EconStor >
ifo Institut – Leibniz-Institut für Wirtschaftsforschung an der Universität München >
CESifo Working Papers, CESifo Group Munich >

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10419/26233
  
Title:Foreign takeovers and wage dispersion in Hungary PDF Logo
Authors:Csengődi, Sándor
Urban, Dieter M.
Issue Date:2008
Series/Report no.:CESifo working paper 2188
Abstract:This study tests FDI technology spillover models with the assumption that learning takes time against wage bargaining models by estimating the wage-premium of a foreign takeover. The technology spillover theory predicts a larger wage growth in firms taken over by foreign investors than in local firms. However, this wage growth should be confined to high-skilled workers or workers with a high level of education. Wage bargaining models also predict such a wage growth. But it should be confined to workers who are organized in trade unions, i.e. workers with low or medium level of education or skill. We apply Hungarian employee-employer matched data from 1992 until 2001, and reject the FDI technology spillover model in favor of the wage bargaining model when differentiating the wage premium by education or occupation, both by applying Mincer wage regressions and the nearest-neighbor matching method.
Subjects:FDI
foreign takeover
cross-border M&A
Mincer wage regression
employeeemployer matched data
nearest-neighbor matching
JEL:E24
F16
F23
Document Type:Working Paper
Appears in Collections:CESifo Working Papers, CESifo Group Munich

Files in This Item:
File Description SizeFormat
558336280.PDF302.59 kBAdobe PDF
No. of Downloads: Counter Stats
Download bibliographical data as: BibTeX
Share on:http://hdl.handle.net/10419/26233

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.