Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/244420 
Year of Publication: 
2005
Series/Report no.: 
Working Paper No. 10/2005
Publisher: 
Örebro University School of Business, Örebro
Abstract: 
We observe a substantial increase of foreign ownership in Sweden in the 1990s. Did that have any effect on relative demand for skilled labor? Has technology transfers often associated with inward FDI led to increased demand for skills due to skilled-biased technical change? Are there any grounds for the worries in the public Swedish debate that more skilled activities have been moved abroad to countries where the headquarters are located? We obtain support for that the share of skilled labor tends to rise in non-multinationals but not in multinationals that become foreign owned. Yet it does not seem to be any relationship between increased foreign ownership and the relative demand for skilled labor in Swedish manufacturing between 1986 and 2000. Interestingly, increased competition from low-wage countries, rather than inward FDI, has had significant impact on skill upgrading, and appears to have played a larger role in the 1990s than before.
Subjects: 
foreign ownership
skill upgrading
wage differentials
JEL: 
F23
J23
J31
Document Type: 
Working Paper

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