Arbeitspapier

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

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. The 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 %.

Language
Englisch

Bibliographic citation
Series: Diskussionspapiere ; No. 50

Classification
Wirtschaft
Single Equation Models; Single Variables: Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions
Wage Level and Structure; Wage Differentials
Multinational Firms; International Business
Subject
foreign ownership
wages
linked employer-employee data
Lohnstruktur
Eigentümerstruktur
Multinationales Unternehmen
Deutschland
Alte Bundesländer
Neue Bundesländer

Event
Geistige Schöpfung
(who)
Andrews, Martyn J.
Bellmann, Lutz
Schank, Thorsten
Upward, Richard
Event
Veröffentlichung
(who)
Friedrich-Alexander-Universität Erlangen-Nürnberg, Lehrstuhl für Arbeitsmarkt- und Regionalpolitik
(where)
Nürnberg
(when)
2007

Handle
Last update
20.09.2024, 8:23 AM CEST

Data provider

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Object type

  • Arbeitspapier

Associated

  • Andrews, Martyn J.
  • Bellmann, Lutz
  • Schank, Thorsten
  • Upward, Richard
  • Friedrich-Alexander-Universität Erlangen-Nürnberg, Lehrstuhl für Arbeitsmarkt- und Regionalpolitik

Time of origin

  • 2007

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