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

Contact

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

Fredrik Sjöholm

Contact

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

Integrating Immigrants into the Nordic Labour Markets

An Overall Perspective

Pages-from-2019-Calmfors-Gassen---Integrating-Immigrants-into-the-Nordic-Labour-Markets.gif

Denmark, Finland, Norway and Sweden face similar problems of integrating large groups of immigrants, especially low-educated ones from outside the EU, into their labour markets. In this volume, edited by Lars Calmfors, IFN, and Nora Sánchez Gassen in cooperation with researchers from across the Nordic Region analyse how labour market integration of immigrants can be promoted. 

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