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Acquisitions, Multinationals and Wage Dispersion

Author

Listed:
  • Heyman, Fredrik

    (Research Institute of Industrial Economics)

  • Gustavsson Tingvall, Patrik

    (Stockholm School of Economics)

  • Sjöholm, Fredrik

    (Stockholm School of Economics)

Abstract

Multinational firms pay relatively high wages. Less is known about the wage structure within multinational and non-multinational firms. We examine the impact of acquisitions on wage dispersion in Sweden using a large matched employer-employee data set. Foreign acquisitions of Swedish firms increase wage dispersion by increasing wages for high-skilled workers. The positive impact is concentrated to CEOs and managers, whereas other groups are either negatively affected or not affected at all. The impact on high-skilled workers’ wages seems to be caused by the acquisition rather than the ownership itself, since ownership changes from foreign to Swedish result in similar increases.

Suggested Citation

  • Heyman, Fredrik & Gustavsson Tingvall, Patrik & Sjöholm, Fredrik, 2006. "Acquisitions, Multinationals and Wage Dispersion," Working Paper Series 675, Research Institute of Industrial Economics.
    • Handle: RePEc:hhs:iuiwop:0675
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Sándor Csengödi & Dieter M. Urban, 2008. "Foreign Takeovers and Wage Dispersion in Hungary," CESifo Working Paper Series 2188, CESifo.
    2. Bruce A. Blonigen & Lionel Fontagné & Nicholas Sly & Farid Toubal, 2012. "Cherries for Sale: Export Networks and the Incidence of Cross-Border M&A," NBER Working Papers 18414, National Bureau of Economic Research, Inc.
    3. Fredrik Heyman & Helena Svaleryd & Jonas Vlachos, 2013. "Competition, Takeovers, and Gender Discrimination," ILR Review, Cornell University, ILR School, vol. 66(2), pages 409-432, April.
    4. Molintas, Dominique Trual, 2010. "Globalisation impact on Danish SME: Offshore Outsourcing & local competitiveness," MPRA Paper 96529, University Library of Munich, Germany.
    5. John S. Earle & Almos Telegdy & Gabor Antal, 2012. "FDI and Wages: Evidence from Firm-Level and Linked Employer-Employee Data in Hungary, 1986-2008," Budapest Working Papers on the Labour Market 1209, Institute of Economics, Centre for Economic and Regional Studies.
    6. Nilsson Hakkala, Katariina & Heyman, Fredrik & Sjöholm, Fredrik, 2008. "Multinational Firms and Job Tasks," Working Paper Series 781, Research Institute of Industrial Economics.
    7. Lundan, Sarianna M., 2007. "The Home Country Effects of Internationalisation," Discussion Papers 1100, The Research Institute of the Finnish Economy.

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    More about this item

    Keywords

    FDI; Multinational Companies; Foreign Ownership; Wage-Dispersion; Skill Groups; Matched Employer-Employee Data;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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