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Foreign Ownership Wage Premia in Emerging Economies: Evidence from Czech Republic

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Foreign Ownership Wage Premia in Emerging Economies : Evidence from Czech Republic. / Eriksson, Tor; Pytlikova, Mariola.

In: Economics of Transition, Vol. 19, No. 2, 2011, p. 371-395.

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Eriksson, Tor ; Pytlikova, Mariola. / Foreign Ownership Wage Premia in Emerging Economies : Evidence from Czech Republic. In: Economics of Transition. 2011 ; Vol. 19, No. 2. pp. 371-395.

Bibtex

@article{90388a61d3d24acc9e1aab8af00e82e7,
title = "Foreign Ownership Wage Premia in Emerging Economies: Evidence from Czech Republic",
abstract = "In this paper we examine the relationship between wages, labour productivity and ownership using a linked employer-employee dataset covering a large fraction of the Czech labour market in 2006. We distinguish between different origins of ownership and study wage and productivity differences. The raw wage differential between foreign and domestically owned firms is about 23 percent. The empirical analysis is carried out on both firm- and individual-level data. A key finding is that industry, region, and notably human capital explain only a small part of the foreign-domestic ownership wage differential. Both white and blue collar workers as well as skilled and unskilled employees obtain a foreign ownership wage premium. Foreign ownership premia are more prevalent in older and less technologically advanced firms. Joint estimation of productivity and wage equations show that, controlling for human capital, the difference in productivity is about twice as large as the wage differential. Overall, results indicate that the international firms share their rents with their employees.",
author = "Tor Eriksson and Mariola Pytlikova",
year = "2011",
doi = "10.1111/j.1468-0351.2011.00411.x",
language = "English",
volume = "19",
pages = "371--395",
journal = "Economics of Transition",
issn = "0967-0750",
publisher = "Wiley-Blackwell Publishing Ltd.",
number = "2",

}

RIS

TY - JOUR

T1 - Foreign Ownership Wage Premia in Emerging Economies

T2 - Evidence from Czech Republic

AU - Eriksson, Tor

AU - Pytlikova, Mariola

PY - 2011

Y1 - 2011

N2 - In this paper we examine the relationship between wages, labour productivity and ownership using a linked employer-employee dataset covering a large fraction of the Czech labour market in 2006. We distinguish between different origins of ownership and study wage and productivity differences. The raw wage differential between foreign and domestically owned firms is about 23 percent. The empirical analysis is carried out on both firm- and individual-level data. A key finding is that industry, region, and notably human capital explain only a small part of the foreign-domestic ownership wage differential. Both white and blue collar workers as well as skilled and unskilled employees obtain a foreign ownership wage premium. Foreign ownership premia are more prevalent in older and less technologically advanced firms. Joint estimation of productivity and wage equations show that, controlling for human capital, the difference in productivity is about twice as large as the wage differential. Overall, results indicate that the international firms share their rents with their employees.

AB - In this paper we examine the relationship between wages, labour productivity and ownership using a linked employer-employee dataset covering a large fraction of the Czech labour market in 2006. We distinguish between different origins of ownership and study wage and productivity differences. The raw wage differential between foreign and domestically owned firms is about 23 percent. The empirical analysis is carried out on both firm- and individual-level data. A key finding is that industry, region, and notably human capital explain only a small part of the foreign-domestic ownership wage differential. Both white and blue collar workers as well as skilled and unskilled employees obtain a foreign ownership wage premium. Foreign ownership premia are more prevalent in older and less technologically advanced firms. Joint estimation of productivity and wage equations show that, controlling for human capital, the difference in productivity is about twice as large as the wage differential. Overall, results indicate that the international firms share their rents with their employees.

U2 - 10.1111/j.1468-0351.2011.00411.x

DO - 10.1111/j.1468-0351.2011.00411.x

M3 - Journal article

VL - 19

SP - 371

EP - 395

JO - Economics of Transition

JF - Economics of Transition

SN - 0967-0750

IS - 2

ER -