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Is There Really A Foreign Ownership Wage Premium?Evidence From Matched Employer-Employee Data

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Author Info

  • Heyman, Fredrik

    (Trade Union Institute for Economic Research (FIEF),)

  • Sjöholm, Fredrik

    ()
    (European Institute of Japanese Studies)

  • Gustavsson Tingvall, Patrik

    ()
    (European Institute of Japanese Studies)

Abstract

Numerous studies based on firm-level data have reported higher average wages in foreign-owned firms than in domestically-owned firms. This, however, does not necessarily imply that the individual worker’s wage increase with foreign ownership. Using detailed matched employer-employee data, we examine the effect of foreign ownership on individual wages, controlling for individual and firm heterogeneity as well as for possible selection bias in foreign acquisitions. We distinguish between foreign greenfields and takeovers and compare foreign ownership with both domestic multinationals and local firms. Our results indicate that employees in foreign-owned firms do not have systematically higher wages than comparable workers in similar Swedish owned firms.

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Bibliographic Info

Paper provided by The European Institute of Japanese Studies in its series EIJS Working Paper Series with number 206.

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Length: 32 pages
Date of creation: 01 Oct 2004
Date of revision:
Handle: RePEc:hhs:eijswp:0206

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Postal: The European Institute of Japanese Studies, Stockholm School of Economics, P.O. Box 6501, 113 83 Stockholm, Sweden
Phone: +46-8-7369360
Fax: +46-8-313017
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Web page: http://www.hhs.se/eijs/
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Keywords: FDI; Foreign ownership; Wages; Matched Employer-Employee data; Propensity score matching.;

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References

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