Multinationals, Cross-border Acquisitions and Wage Dispersion

Fredrik Heyman, Fredrik Sjöholm, Patrick Gustavsson Tingvall

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    We examine the impact of cross-border acquisitions on intra-firm wage dispersion using a detailed Swedish linked employer-employee data set including data on all firms and about 50% of the Swedish labour force with information on job-tasks and education. Foreign acquisitions of domestic multinationals and local firms increase wage dispersion but so do also other types of cross-border acquisitions. Hence, it is the acquisition itself rather than foreign ownership that increases wage dispersion. The positive wage effect is concentrated to CEOs and other managers, whereas other groups are either negatively affected or not affected at all
    Original languageEnglish
    JournalCanadian Journal of Economics
    Issue number2
    Pages (from-to)627-650
    Publication statusPublished - 2011

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