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BY 4.0 license Open Access Published by De Gruyter Open Access June 6, 2012

The Wage Premium of Foreign Ownership: Evidence from European Mergers and Acquisitions

  • Harald Oberhofer EMAIL logo , Matthias Stöckl and Hannes Winner
From the journal Economics


The authors provide evidence on the impact of foreign ownership on labor market outcomes analyzing pay differences between foreign-acquired and domestically owned firms. For this purpose, they use firm-level data from 16 European countries over the time period 1999–2006. Combing propensity score matching techniques with difference-in-differences (DID) estimators the authors estimate positive wage premia of cross-border merger and acquisitions (M&As), suggesting that foreign-acquired firms exhibit higher short-run (postacquisition) wage growth than their domestic counterparts. The observed wage disparities are most pronounced for low paying firms (with average wages below the median) which are typically located in Eastern European transition economies.

JEL Classification: C21; F15; G34; J31


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Published Online: 2012-06-06
Published in Print: 2012-12-01

© 2012 Harald Oberhofer et al., published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

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