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Do gender norms travel within corporations? The impact of foreign subsidiaries on the home country gender wage gap

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Abstract

In this note, we provide evidence that gender norms can be transferred within firms and across borders by means of foreign direct investment. Using microdata from both Sweden and Estonia, two countries with vastly different levels of gender inequality, we find that firms in Sweden with strong intra-firm linkages to Estonia display a relatively large gender wage gap at home.

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  • Halvarsson, Daniel & Lark, Olga & Tingvall, Patrik & Vather, Priit & Videnord, Josefin, 2022. "Do gender norms travel within corporations? The impact of foreign subsidiaries on the home country gender wage gap," Ratio Working Papers 360, The Ratio Institute.
    • Handle: RePEc:hhs:ratioi:0360
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    1. Halvarsson, Daniel & Lark, Olga & Gustavsson Tingvall, Patrik, 2022. "Foreign Ownership and Transferring of Gender Norms," Working Paper Series 1433, Research Institute of Industrial Economics.
    2. Tang, Heiwai & Zhang, Yifan, 2021. "Do multinationals transfer culture? Evidence on female employment in China," Journal of International Economics, Elsevier, vol. 133(C).
    3. Priit Vahter & Jaan Masso, 2019. "The contribution of multinationals to wage inequality: foreign ownership and the gender pay gap," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 155(1), pages 105-148, February.
    4. Halvarsson, Daniel & Lark, Olga & Gustavsson Tingvall, Patrik, 2022. "Foreign Ownership and Transferring of Gender Norms," Working Papers 2022:6, Lund University, Department of Economics.
    5. Elhanan Helpman & Marc Melitz & Yona Rubinstein, 2008. "Estimating Trade Flows: Trading Partners and Trading Volumes," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 123(2), pages 441-487.
    6. Neumayer, Eric & de Soysa, Indra, 2011. "Globalization and the Empowerment of Women: An Analysis of Spatial Dependence via Trade and Foreign Direct Investment," World Development, Elsevier, vol. 39(7), pages 1065-1075, July.
    7. Bøler, Esther Ann & Javorcik, Beata & Ulltveit-Moe, Karen Helene, 2018. "Working across time zones: Exporters and the gender wage gap," Journal of International Economics, Elsevier, vol. 111(C), pages 122-133.
    8. Halvarsson, Daniel & Lark, Ola & Gustavsson Tingvall, Patrik, 2022. "Ratio Working Paper No. 354: Foreign Ownership and Transferring of Gender Norms," Ratio Working Papers 354, The Ratio Institute.
    9. Alessandra Bonfiglioli & Federica de Pace, 2021. "Export, Female Comparative Advantage and the Gender Wage Gap," Working Papers 925, Queen Mary University of London, School of Economics and Finance.
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    More about this item

    Keywords

    Gender wage gap; FDI; Subsidiary firms; Internationalization; Wages;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • F66 - International Economics - - Economic Impacts of Globalization - - - Labor
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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