Template-Type: ReDIF-Paper 1.0

Author-Name: Hartmut Egger 
Author-X-Name-First: Hartmut 
Author-X-Name-Last: Egger 

Author-Name: Elke Jahn
Author-X-Name-First: Elke 
Author-X-Name-Last: Jahn

Author-Name: Stefan Kornitzky
Author-X-Name-First: Stefan 
Author-X-Name-Last: Kornitzky

Title: Reassessing the Foreign Ownership Wage Premium in Germany 
	
Abstract: Thispaperevaluatesthee?ectofforeigntakeoveronwagesofworkersinGerman establishments, using rich linked employer-employee data from 2003 to 2014. To identify a causal e?ect of foreign takeover, we combine propensityscore matching with a di?erence-in-di?erence estimator. We ?nd that a takeoverbyaforeigninvestorleadstoawagepremiumof4.0logpointsinthe year after ownership change, which further increases to 6.3 log points three years after acquisition. The wage premium is largest for high-skilled workers and higher for managers than for non-managers. We also show that the wage premium does not pick up an exporter e?ect due to a platform investment of the foreign owner, that it takes four to ?ve years before it fully develops, and that the wage increase is speci?c to foreign acquisition instead of ownership change per se. 

Length: 27 pages
Creation-Date:  2020-02
File-URL: http://www.bgpe.de/texte/DP/189_Egger_Jahn_Kornitzky.pdf
File-Format: Application/pdf
File-Function: First version, 2020
Number: 189
Classification-JEL:  F14, F16, F23 
Keywords:  Foreign ownership wage premium, Impact vs. adjustment e?ects, Propensity-score matching, Di?erence-in-di?erence estimation

Handle: RePEc:bav:wpaper:189_EggerJahnKornitzky