TY - CEPII
A1 - Gianluca Orefice
A1 - Nicholas Sly
A1 - Farid Toubal
TI - The Multinational Wage Premium and Wage Dynamics
IS - 2015-27
T3 - Working Papers
KW - multinational enterprises
KW - wage premium
KW - in-kind payments
KW - fair wages
N2 - Using detailed administrative data linking French firms and workers over the years 2002-2007, we document a distinct U-shaped pattern in worker-level wages surrounding the time their employer is acquired by a foreign firm, with a dip in earnings observed in years just before domestic firms switch to MNE status. The dip in earnings is evident in both wages and in-kind payments given to workers. To guide our empirical approach, we present a simple model with fair wage considerations among workers and endogenous cross-border acquisition activity that predicts this U-shaped pattern, and characterizes the selection of domestic targets for acquisition by an MNE.
ER -