Template-Type: ReDIF-Paper 1.0
Series: Tinbergen Institute Discussion Papers
Creation-Date: 2022-02-14
Number: 22-014/V
Author-Name: Marcus Rösch
Author-Workplace-Name: Erasmus University Rotterdam
Author-Name: Michiel Gerritse
Author-Workplace-Name: Erasmus University Rotterdam
Author-Name: Bas Karreman
Author-Workplace-Name: Erasmus University Rotterdam
Author-Name: Frank van Oort
Author-Workplace-Name: Erasmus University Rotterdam
Author-Name: Bart Loog
Author-Workplace-Name: Statistics Netherlands
Title: Do firms or workers drive the foreign acquisition wage premium?
Abstract: We decompose the wage premium after foreign acquisitions of Dutch domestic firms into the con- stituent firm- and worker-level premia. Firm-level premia grow up to 3.5%, accounting for the major- ity of the acquisition premium. Worker-level premia by contrast, grow up to 1% and only materialize with delay, as the acquired firms hire workers with higher earnings capacity than domestic firms. Within firms, premia are also higher for workers with a relatively high earnings capacity. Though in- dustry variation and firm size class heterogeneity is considerable, the dominance of firm-level premia suggests that foreign acquisitions change firms beyond a workforce reshuffling.
Classification-JEL: J31, F23, G34
Keywords: multinational firms, foreign acquisition, wage components, labor mobility, matched employer-employee data, AKM
File-Url: https://papers.tinbergen.nl/22014.pdf
File-Format: application/pdf
File-Size: 1,276,934 bytes
Handle: RePEc:tin:wpaper:20220014