Do gender norms travel within corporations? The impact of foreign subsidiaries on the home country’s gender wage gap

PublicationArticle (with peer review)
Daniel Halvarsson

Abstract

In this note we study how the share of workers in a corporation located in a high gender wage gap country impacts the wage gap in their home country operations. Our findings support the hypothesis that firms with strong intra-firm linkages to a high gender wage gap country also display a relatively large gender wage gap at home.

Halvarsson, D., Lark, O., Tingvall, P. G., Vahter, P., & Videnord, J. (2023). Do gender norms travel within corporations? The impact of foreign subsidiaries on the home country’s gender wage gap. Applied Economics Letters, 1-5.


Similar content

Ratio Working Paper No. 374: The Impact of High-Skilled Migration on Productivity in Swedish Firms
Working paperPublication
Halvarsson, D.
Publication year

2024

Published in

Ratio Working paper series.

Abstract

The migration of highly skilled labor has received increasing attention due to its role in fostering innovation and productivity. This study explores the impact of foreign experts on the productivity of Swedish companies. Utilizing a difference-in-difference model with comprehensive register data from 1996 to 2015, the analysis reveals that Swedish companies hiring foreign experts experience a significant productivity increase of 6 to 11 percent within two to three years post-hiring. This effect is particularly pronounced in small and medium-sized enterprises and is slightly enhanced when excluding returning Swedish-born experts. Additionally, the study finds that both labor and capital productivity rise, along with a modest increase in wage incomes for other employees, estimated at 1.5 to 2 percent. However, the wage effects are less robust compared to productivity impacts. The findings underscore the importance of attracting foreign talent to bolster productivity. This research fills a crucial gap in the literature by focusing on the specific effects of foreign experts on total factor productivity in a small, knowledge-oriented economy like Sweden’s.

Ratio Working Paper No 363: City Size, Employer Concentration, and Wage Income Inequality
Working paperPublication
Korpi, M., & Halvarsson, D.
Publication year

2023

Published in

Rati Working Paper Series.

Abstract

In this paper, we build upon a monopsony framework, suggested by Card et. al. 2016, which links firm level productivity and rent-sharing to wage inequality. Specifically, our research questions address i) to which extent labor market concentration across firms (within different types of locally situated industries) affects variation in wages among workers within these firms and industries, and ii) how this variation in turn spills over into economy-wide inequality (measured at the level of local labor markets). Using linked employer-employee full population data for Sweden, and an AKM modelling framework to separate between worker- and firm-level heterogeneity, our results suggest that higher firm-level fixed effects (a measure of rent-sharing) is associated with lower labor market employer concentration, something which affects average wage income among firms accordingly. Addressing wage income inequality by applying our model to different segments of the local labor market income distribution, we find that reduced average employer concentration in larger cities accounts for almost all variation in the (positive) link between city size-and wage inequality, except for the largest metropolises where it captures around 30-50 percent of variation depending on the income segment that we focus on.

Amundsen versus Scott: are growth paths related to firm performance?
Article (with peer review)Publication
Coad, A., Daunfeldt, SO. & Halvarsson, D.
Publication year

2022

Published in

Small Business Economics 59, 593–610 (2022).

Abstract

In the race to the South Pole, Roald Amundsen’s expedition covered an equal distance each day, irrespective of weather conditions, while Scott’s pace was erratic. Amundsen won the race and returned without loss of life, while Scott and his men died. In the context of firm growth, the Amundsen hypothesis suggests that smoother growth paths are associated with better performance in subsequent periods. We develop a new method to investigate how firms’ sales growth deviates from their long-run average growth path. Our baseline results suggest that growth path volatility is associated with higher growth of sales and profits, but also with higher exit rates. However, this result is driven by firms with negative growth rates. For positive-growth firms, volatility is negatively associated with both sales growth and survival, providing nuanced support for the Amundsen hypothesis.

The article can be accessed here.

Show more