Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/128960 
Year of Publication: 
2012
Series/Report no.: 
WIFO Working Papers No. 416
Publisher: 
Austrian Institute of Economic Research (WIFO), Vienna
Abstract: 
We provide evidence on the impact of globalisation on labour market outcomes analysing 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 premiums of cross-boarder merger and acquisitions, 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 premiums in Western European countries, but not so in Eastern Europe.
Subjects: 
Globalisation
mergers and acquisitions
wage effects
propensity score matching
Document Type: 
Working Paper

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