Foreign ownership and effects on employment and wages: The case of Sweden
In this paper we study how foreign ownership of Swedish companies affect employment and wage setting. To study the effects we specify a model that is essentially based on the assumption that the Swedish labour market can be described as a market where trade unions and employers bargain over both wage and employment. Our hypothesis is that the bargaining power is affected by institutional settings and the ownership of the firm. The data we used to test our hypothesis is a panel data set including nearly 200 firms, spanning over the period 1980-1994. The results indicate that foreign ownership has no significant effect on employment, whereas the effect on wages is significantly positive.
|Date of creation:||30 Jun 2004|
|Date of revision:||01 Nov 2004|
|Contact details of provider:|| Postal: Department of Economics, Umeå University, S-901 87 Umeå, Sweden|
Phone: 090 - 786 61 42
Fax: 090 - 77 23 02
Web page: http://www.econ.umu.se/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Robert E. Lipsey, 1994. "Foreign-Owned Firms and U.S. Wages," NBER Working Papers 4927, National Bureau of Economic Research, Inc.
- McDonald, Ian M & Solow, Robert M, 1981. "Wage Bargaining and Employment," American Economic Review, American Economic Association, vol. 71(5), pages 896-908, December.
- Robin Naylor & Michele Santoni, 2003.
"Foreign direct investment and wage bargaining,"
The Journal of International Trade & Economic Development,
Taylor & Francis Journals, vol. 12(1), pages 1-18.
- Minsik Choi, 2001. "Threat Effect of Foreign Direct Investment on Labor Union Wage Premium," Working Papers wp27, Political Economy Research Institute, University of Massachusetts at Amherst.
- Aitken, B. & Harrison, A. & Lipsey, R.E., 1995.
"Wages and Foreign Ownership: A Comparative Study of Mexico, Venezuela, and the United States,"
95-21, Columbia - Graduate School of Business.
- Aitken, Brian & Harrison, Ann & Lipsey, Robert E., 1996. "Wages and foreign ownership A comparative study of Mexico, Venezuela, and the United States," Journal of International Economics, Elsevier, vol. 40(3-4), pages 345-371, May.
- Brian Aitken & Ann Harrison & Robert E. Lipsey, 1995. "Wages and Foreign Ownership: A Comparative Study of Mexico, Venezuela and the United States," NBER Working Papers 5102, National Bureau of Economic Research, Inc.
- Bughin, Jacques & Vannini, Stefano, 1995. "Strategic direct investment under unionized oligopoly," International Journal of Industrial Organization, Elsevier, vol. 13(1), pages 127-145, March.
- Arulampalam, W. & Robin A. Naylor & Jeremy P. Smith, 2002. "University of Warwick," Royal Economic Society Annual Conference 2002 9, Royal Economic Society.
- Vannetelbosch, Vincent J., 1993.
"Testing Between Alternative Wage-Employment Bargaining Models Using Belgian Aggreggate Data,"
Discussion Papers (IRES - Institut de Recherches Economiques et Sociales)
1994012, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES), revised 27 Apr 1994.
- Vannetelbosch, Vincent J., 1996. "Testing between alternative wage-employment bargaining models using Belgian aggregate data," Labour Economics, Elsevier, vol. 3(1), pages 43-64, August.
- Vannetelbosch, V. J., . "Testing between alternative wage-employment bargaining models using Belgian aggregate data," CORE Discussion Papers RP 1233, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Hatzius, Jan, 2000. "Foreign direct investment and factor demand elasticities," European Economic Review, Elsevier, vol. 44(1), pages 117-143, January.
- Manning, Alan, 1987. "An Integration of Trade Union Models in a Sequential Bargaining Framework," Economic Journal, Royal Economic Society, vol. 97(385), pages 121-39, March.
- Alogoskoufis, George & Manning, Alan, 1991. "Tests of alternative wage employment bargaining models with an application to the UK aggregate labour market," European Economic Review, Elsevier, vol. 35(1), pages 23-37, January.
- Hausman, Jerry A., 1983. "Specification and estimation of simultaneous equation models," Handbook of Econometrics, in: Z. Griliches† & M. D. Intriligator (ed.), Handbook of Econometrics, edition 1, volume 1, chapter 7, pages 391-448 Elsevier.
When requesting a correction, please mention this item's handle: RePEc:hhs:umnees:0638. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (David Skog)
If references are entirely missing, you can add them using this form.