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Canadian Journal of Economics

Multinationals, Cross–Border Acquisitions and Wage Dispersion

Scientific Article in English
Reference
Heyman, Fredrik, Fredrik Sjöholm and Patrik Gustavsson Tingvall (2011). “Multinationals, Cross–Border Acquisitions and Wage Dispersion”. Canadian Journal of Economics 44(2), 627–650. doi.org/10.1111/j.1540-5982.2011.01647.x

Authors
Fredrik Heyman, Fredrik Sjöholm, Patrik Gustavsson Tingvall

We examine the impact of cross-border acquisitions on intra-firm wage dispersion using a detailed Swedish linked employer-employee data set including data on all firms and about 50% of the Swedish labour force with information on job-tasks and education. Foreign acquisitions of domestic multinationals and local firms increase wage dispersion but so do also other types of cross-border acquisitions. Hence, it is the acquisition itself rather than foreign ownership that increases wage dispersion. The positive wage effect is concentrated to CEOs and other managers, whereas other groups are either negatively affected or not affected at all.