Is There Really a Foreign Ownership Wage Premium? Evidence from Matched Employer-Employee Data

Heyman, Fredrik; Sjöholm, Fredrik; Tingvall, Patrik Gustavsson

doi:10.2139/ssrn.764308

Cited by 59 publications

(82 citation statements)

References 41 publications

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“…The results from the sector-level analysis are in line with the available firm-level evidence that, for the most part, does not find any strong evidence, positive or negative, of an impact of increased GSC participation on wages (Heyman et al, 2007;Almeida, 2007). 11 Examining the causal effect of GSC participation on wages is quite challenging due to the demanding data requirements (Javorcik, 2014).…”

Section: 2supporting

confidence: 68%

Changes in Global Production Patterns and Impacts on Enterprises and Employment

Corley-Coulibaly

Kizu

Kühn

et al. 2015

World Employ Soc Outlook

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This chapter examines global trends in the internationalization of production and presents new estimates of the number of jobs linked to global supply chains, providing both aggregate figures and figures by sector and sex. The chapter finds that 453 million jobs were related to global supply chains in 2013 in the 40 countries covered by the estimates, an increase from 296 million jobs in 1995. The chapter also discusses results of a sector‐level analysis in which empirical relationships between a sector's participation in global supply chains and selected indicators are identified from both the lead and the supplier firm perspective. Results suggest that, at least in developed economies, there is a positive impact of global supply chain participation on productivity, while no such impact on wages is found. The chapter concludes by exploring the policy options that are available to ensure that economic benefits of global supply chain participation translate into benefits for workers.

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Section: 2supporting

confidence: 68%

Changes in Global Production Patterns and Impacts on Enterprises and Employment

Corley-Coulibaly

Kizu

Kühn

et al. 2015

World Employ Soc Outlook

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show abstract

“…Second, the individual moves to another plant with a different ownership status. While Martins (2006) and Heyman, Sjöholm & Tingvall (2004) use the former (and explicitly rely on workers staying in the same firm) to identify the ownership differential, the studies of Pesola (2006) and Balsvik (2006) are based on movement of workers.…”

Section: Previous Estimatesmentioning

confidence: 99%

“…Some of these studies only investigate the effect of becoming foreign-owned (Martins (2006), Heyman et al (2004), Girma & Görg (2006)) or restrict the effects of going from domestic to foreign and of going from foreign to domestic as being equal and opposite (Earle & Telegdy (2006)). Conyon, Girma, Thompson & Wright (2002) is the only study at the plant level which also considers the effect of changing from foreign-to domestically owned, although their control group comprises firms of both ownership types not changing their status.…”

mentioning

confidence: 99%

The Takeover and Selection Effects of Foreign Ownership in Germany: An Analysis Using Linked Worker-Firm Data

et al. 2007

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. We use a linked employer-employee data set from Germany to estimate the wage effect of foreign-affiliates in East and West Germany. In addition, the wage effects of the large number of West German affiliates which are located in East Germany are also considered. The implemented techniques allow us to control both for worker-and plant-level unobserved components of earnings. We find large selection effects both in terms of worker and firm unobserved components of wages. Terms of use: Documents inThe selection effect is larger for East German plants. Once it is taken into account, the genuine takeover effect is small and in some cases insignificantly different from zero. In contrast to the selection effect, the takeover effect is slightly larger in West Germany, where it amounts to 2.7 %.

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“…Hibbs and Locking (2000) argue that a series of institutional factors may be an important reason for inter-industry wage differences. A closely related strand in the literature is the empirical analysis of foreign ownership wage premia, such as that presented by Heyman et al (2007). They econometrically estimate a wage premium for a sample of Swedish firms using a regression equation with a dummy variable for foreign ownership and a set of firm level variables.…”

Section: Literature Reviewmentioning

confidence: 99%

“…This is the approach adopted in this paper. The majority of previous studies such as Martins (2004) or Heyman et al (2007) use micro-level data based on surveys of individuals to estimate such relationships. To allow for occupational detail a different micro-level data set is required and this study uses the US Occupational Employment Statistics (OES).…”

mentioning

confidence: 99%

Wage Differentials and Their Determinants in US Tourism and Tourism-Associated Industries

Webster

2014

Tourism Economics

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This paper examines variations in wages for tourism and tourismassociated industries in the USA for the period [2004][2005][2006][2007][2008][2009]. It critically assesses the extent to which tourism and tourism-associated activities conform to their low-wage stereotype and finds this to be true in general, but not universally. It then considers the possibility that wages in US tourism and tourism-associated industries can be explained by observable characteristics of these industries. Recent research suggests that the use of wage data at the level of highly detailed occupations is an effective alternative to other ways of capturing underlying skill differences. Accordingly, data from the US Occupational Employment Statistics (OES) were used to provide this detail. The results strongly support the importance of difference in wages between occupations in understanding differences between industries. They also support the importance of a number of industry characteristics, including profitability, multi-factor productivity and demand growth. The paper also considers the relevance of an industry wage premium or discount for tourism and tourism-associated activities in the USA over the same period. It estimates an industry wage model separately for five individual occupations across all industries that employ for the occupation concerned. The analysis shows that workers in the two more highly paid occupations exhibit evidence of a tourism and tourism-associated discount but that workers in the three more lowly paid occupations exhibit a tourism and tourismassociated wage premium.

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Is There Really a Foreign Ownership Wage Premium? Evidence from Matched Employer-Employee Data

Cited by 59 publications

References 41 publications

Changes in Global Production Patterns and Impacts on Enterprises and Employment

Changes in Global Production Patterns and Impacts on Enterprises and Employment

The Takeover and Selection Effects of Foreign Ownership in Germany: An Analysis Using Linked Worker-Firm Data

Wage Differentials and Their Determinants in US Tourism and Tourism-Associated Industries

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