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Foreign Ownership, Exporting and Gender Wage Gaps: Evidence from Japanese Linked Employer-Employee Data

Author

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  • Theresa M. Greaney

    (University of Hawai‘i)

  • Ayumu Tanaka

    (Chuo University)

Abstract

We explore potential relationships between international economic activities and gender wage gaps (GWGs) using linked employer-employee data for Japan. We find evidence that exporting and multinational activities are associated with reduced GWGs. Domestic-owned firms that neither export nor invest abroad (i.e., domestic-only firms) report the largest GWG, followed by Japanese-owned multinational enterprises(JMNE), then by locally-owned exporters that do not invest abroad and finally by foreign-owned multinational enterprises (FMNE). We separate FMNE by mode of entry and confirm that FMNE established by greenfield investment deviate more than FMNE established by merger and acquisition from domestic-only firms in terms of wages. Greenfield- born FMNE are associated with the smallest GWG and largest gender- neutral wage premium among the firm types. The estimated GWG among Greenfield-born FMNE is almost 12 percentage-points lower than the 26.8 percent prevailing at domestic-only firms.

Suggested Citation

  • Theresa M. Greaney & Ayumu Tanaka, 2020. "Foreign Ownership, Exporting and Gender Wage Gaps: Evidence from Japanese Linked Employer-Employee Data," Working Papers 202025, University of Hawaii at Manoa, Department of Economics.
  • Handle: RePEc:hai:wpaper:202025
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    Cited by:

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    2. SASAHARA Akira & MORI Hiroaki, 2021. "The Effects of Trade on the Gender Gaps: A Model-based Quantitative Investigation," Discussion papers 21076, Research Institute of Economy, Trade and Industry (RIETI).

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    More about this item

    Keywords

    gender wage gap; wage premium; exporters; multinational enterprises;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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