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Foreign ownership and its effects on employment and wages: the case of Sweden

Author

Listed:
  • Runar Brännlund

    (Umeå University)

  • Jonas Nordström

    (University of Copenhagen)

  • Jesper Stage

    (Luleå University of Technology)

  • Dick Svedin

    (Mid Sweden University)

Abstract

In this paper, we study how foreign ownership of Swedish companies affects employment and wages. To study these effects, we specify a model based on the assumption that the Swedish labour market can be described as one where trade unions and employers bargain over employment and wages. Our hypothesis is that bargaining power is affected by institutional settings and the ownership of the firm. To test our hypothesis, we used a panel data set of 242 large Swedish manufacturing firms over the period 1980–2005. The results indicate no significant impact of foreign ownership on employment or wages in Sweden. Jel codes: J30, J50, D21, C33

Suggested Citation

  • Runar Brännlund & Jonas Nordström & Jesper Stage & Dick Svedin, 2016. "Foreign ownership and its effects on employment and wages: the case of Sweden," IZA Journal of European Labor Studies, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 5(1), pages 1-17, December.
    • Handle: RePEc:spr:izaels:v:5:y:2016:i:1:d:10.1186_s40174-016-0058-1
    DOI: 10.1186/s40174-016-0058-1
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    References listed on IDEAS

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    1. Paulina Broniatowska & Paweł Strawiński, 2021. "Foreign- and domestic firm ownership and its impact on wages. Evidence from Poland," European Journal of Industrial Relations, , vol. 27(4), pages 445-466, December.

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