The wage premium of globalization: Evidence from European mergers and acquisitions

Arbeitspapier

We provide evidence on the impact of globalization on labor market outcomes analyzing pay differences between foreign-acquired and domestically-owned firms. For this purpose, we use firm level data from 16 European countries over the time period 1999 to 2006. Applying propensity score matching techniques we estimate positive wage premia of cross-boarder merger and acquisitions (M&As), suggesting that foreign acquired firms exhibit higher short-run (post-acquisition) wages than their domestic counterparts. The observed wage disparities are most pronounced for low paying firms (with average wages below the median). Finally, we find systematic wage premia in Western European countries, but not so in Eastern Europe.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Working Papers in Economics and Finance ; No. 2012-01

Classification and Topics

• Classification: Wirtschaft ; Single Equation Models; Single Variables: Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions ; Economic Integration ; Mergers; Acquisitions; Restructuring; Voting; Proxy Contests; Corporate Governance ; Wage Level and Structure; Wage Differentials
• Subject: Globalization ; mergers and acquisitions ; wage effects ; propensity score matching

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Oberhofer, Harald ; Stöckl, Matthias ; Winner, Hannes
• Event: Veröffentlichung
• (who): University of Salzburg, Department of Social Sciences and Economics
• (where): Salzburg
• (when): 2012

Further information

• Handle: http://hdl.handle.net/10419/71870
• Last update: 10.03.2025, 11:42 AM CET