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

Abstract

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 %.

Do Foreign-Owned Firms Provide Better Working Conditions Than Their Domestic Counterparts? A Comparative Analysis

“…However, other studies, including Andrews et al (2009) for Germany, Malchow-Moller et al (2007) for Denmark and Balsvik (2007) for Finland, point at positive, albeit small, wage effects.…”

Cross-Border Mergers and Domestic Wages: Integrating Positive ‘Spillover’ Effects and Negative ‘Bargaining’ Effects

“…Furthermore, researchers (e.g., Aitken et al, 1996) tended to find that positive spillovers were more likely to manifest in developed nations, as these nations had the requisite 'absorptive capacity' in order to learn from the presence of multinational firms. Yet of late, there have been an increasing amount of empirical studies at a very fine level of analysis (most often combining premise and employee level data) that have been able to support the existence of positive spillovers to employee wages in transition nations (e.g., Smarzynska-Javorcik, 2004), developing nations (e.g., Görg & Strobl, 2005;Poole, 2009), and developed nations (e.g., Andrews et al, 2007;Pesola, 2007;Balsvik, 2010). Furthermore, some empirical scholarship has supported that higher skilled workers tend to reap the majority -if not all -of the wage benefits from the presence of MNEs in a sector (e.g., Driffield & Girma, 2003;Pesola, 2007).…”

“…The most obvious beneficiary of FDI is the domestic firm acquired by the MNE, as the acquired firms productivity (and wage structure) are enhanced toward MNE levels (e.g., Andrews et al, 2007;Braun, 2008;Martins & Esteves, 2008). Girma et al (2001) refer to this direct takeover premium as a composition-effect, and while it is not a pure spillover effect, it certainly represents part of the benefit from crossborder M&A activity.…”

Nacionalidade das empresas e fluxo de empregos: evidências da indústria brasileira de transformação

“…Ampla evidência empírica neste sentido é disponível para os países desenvolvidos (COnyOn et al 2002;MArtIns, 2004;GIrMA;GörG 2007;AnDrEws et al 2007) e países em desenvolvimento/emergentes (AItKEn et al 1996;FEEnstrA;HAnsOn, 1997;LIPsEy;EArLE;tELEGDy, 2007), embora esta literatura não tenha ainda concluído se a diferença salarial entre os dois tipos de empresa é significativa. 1 Estudos recentes, usando dados individuais em painel (MArtIns, op.…”

“…cit. ;HEyMAn et al, 2006;AnDrEws et al, 2007) sugerem que as diferenças obtidas em estudos `cross-section' se devem a heterogeneidade não observada ou efeitos de seleção.…”