2006–2010

Is there Really a Foreign Ownership Wage Premium? Evidence from Matched Employer–Employee Data

Reprint No. 2007:28

Author(s): Fredrik Heyman, Fredrik Sjöholm and Patrik Gustavsson TingvallYear: 2007 Title: Journal of International Economics Volume (No.): 73 (2) Pages: 355–376


Numerous studies on firm-level data have reported higher average wages in foreign-owned firms than in domestically owned firms. This, however, does not necessarily imply that the individual worker's wage increase with foreign ownership. Using detailed matched employer–employee data on the entire Swedish private sector, we examine the effect of foreign ownership on individual wages, controlling for individual and firm heterogeneity as well as for possible selection bias in foreign acquisitions. We distinguish between foreign greenfields and takeovers and compare foreign-owned firms with both domestic multinationals and local firms. Our results show a considerably smaller wage premium in foreign-owned firms than what has been found in studies conducted at a more aggregate level. Moreover, foreign takeovers of Swedish firms tend to have no or even a negative effect on wages.


Reference:
Heyman, Fredrik, Fredrik Sjöholm and Patrik Gustavsson Tingvall (2007), "Is there Really a Foreign Ownership Wage Premium? Evidence from Matched Employer–Employee Data". Journal of International Economics 73(2), 355–376.

Fredrik Heyman

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Ph: +46 8 665 4537
fredrik.heyman@ifn.se

Fredrik Sjöholm

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Ph: +46 46 222 74 26
fredrik.sjoholm@nek.l...

An Agenda for Europe

Institutional Reform for Innovation and Entrepreneurship

Omslag 2017 Institutional Reform for Innovation and Entrepreneurship.jpg

The authors of this book, Niklas Elert, Magnus Henrekson and Mikael Stenkula, advise the economies of the European Union to become more entrepreneurial in promoting innovation and economic growth. The authors propose a reform strategy with respect to several aspects to achieve this goal.

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