Citation

Discussion Paper Details

Please find the details for DP5788 in an easy to copy and paste format below:

Full Details   |   Bibliographic Reference

Full Details

Title: Evaluating the Foreign Ownership Wage Premium Using a Difference-in-Differences Matching Approach

Author(s): Sourafel Girma and Holger Görg

Publication Date: August 2006

Keyword(s): acquisitions, difference-in-differences, matching estimator, multinationals and wages

Programme Area(s): International Trade and Regional Economics

Abstract: This paper seeks to identify the causal effect of foreign acquisitions on wages of skilled and unskilled workers, using difference-in-differences propensity score matching estimators. Our results suggest that there is substantial heterogeneity in the post-acquisition wage effect depending on the nationality of the foreign acquirer and the skill group of workers. We find sizable post acquisition wage effects on skilled and unskilled wages following an acquisition by a US firm. No such impacts result from acquisitions by EU multinationals. Also we discern some positive wage effects for unskilled workers resulting from acquisitions by multinationals from the rest of the world.

For full details and related downloads, please visit: https://cepr.org/active/publications/discussion_papers/dp.php?dpno=5788

Bibliographic Reference

Girma, S and Görg, H. 2006. 'Evaluating the Foreign Ownership Wage Premium Using a Difference-in-Differences Matching Approach'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=5788