Foreign ownership and its effects on employment and wages: the case of Sweden

TY - JOUR

T1 - Foreign ownership and its effects on employment and wages

T2 - the case of Sweden

AU - Brännlund, Runar

AU - Nordström, Leif Jonas

AU - Stage, Jesper

AU - Svedin, Dick

PY - 2016/12/1

Y1 - 2016/12/1

N2 - In this paper, we study how foreign ownership of Swedish companies affects employment and wages. To study these effects, we specify a model based on the assumption that the Swedish labour market can be described as one where trade unions and employers bargain over employment and wages. Our hypothesis is that bargaining power is affected by institutional settings and the ownership of the firm. To test our hypothesis, we used a panel data set of 242 large Swedish manufacturing firms over the period 1980–2005. The results indicate no significant impact of foreign ownership on employment or wages in Sweden.

AB - In this paper, we study how foreign ownership of Swedish companies affects employment and wages. To study these effects, we specify a model based on the assumption that the Swedish labour market can be described as one where trade unions and employers bargain over employment and wages. Our hypothesis is that bargaining power is affected by institutional settings and the ownership of the firm. To test our hypothesis, we used a panel data set of 242 large Swedish manufacturing firms over the period 1980–2005. The results indicate no significant impact of foreign ownership on employment or wages in Sweden.

KW - Faculty of Social Sciences

KW - Bargaining power

KW - Trade union

KW - Employment

KW - Wages

U2 - 10.1186/s40174-016-0058-1

DO - 10.1186/s40174-016-0058-1

M3 - Journal article

SN - 2193-9012

VL - 5

JO - IZA Journal of European Labor Studies

JF - IZA Journal of European Labor Studies

IS - 8

M1 - 8

ER -