Seminar: Foreign ownership, commitment to work and gender wage gap
Seminar of the Department of Economics and Finance:
Wednesday 10 May 2017,
15:00–16:00 in room SOC-214
Foreign ownership, commitment to work and gender wage gap
JAAN MASSO (University of Tartu)
PRIIT VAHTER (University of Warwick)
Abstract: Whereas there is an abundance of studies documenting the significant wage premium of multinationals (MNE) and the effects of FDI on wage inequality, much less is still known on how foreign ownership affects the gender wage gap at firms. This study shows using employer-employee level data from Estonia a persistent regularity: that foreign owned firms have substantially larger gender wage gap than domestic owned firms. This difference results from men capturing higher wage premium from working at MNEs than women, although both gain in terms of wages from their employment at MNEs. We further show that part of this difference in gender wage gap may be explained by MNEs requiring higher commitment and flexibility from their (high-wage) employees compared to other firms. This explanation of the regularity is consistent with recent contributions by Goldin (2014) in labour economics about the substantial role of differences in work commitment and flexibility of jobs in explaining the aggregate gender wage gap.
The seminars of the Department of Economics and Finance (DEF) usually take place on the second and fourth Wednesdays of the month. The seminars are public and the purpose is to strengthen discussion and research cooperation. The presentation will last approximately 45 minutes followed by 15 minutes of discussion, in total one hour. The seminars will generally be held in English. Copies of the paper will be available at the seminar. The DEF seminar series is organised in collaboration with the project “Institutions for Knowledge Intensive Development”, which has received funding from the European Union’s Horizon 2020 research and innovation programme under the Marie Skłodowska-Curie grant agreement No 734712. Questions regarding the seminar can be addressed to Prof Karsten Staehr, karsten dot staehr at ttu dot ee, organiser of the seminars.