Cross-Border M&A Activity and Wage Dynamics
Toubal, Farid; Sly, Nicholas; Orefice, Gianluca (2021), Cross-Border M&A Activity and Wage Dynamics, Industrial & Labor Relations Review, 74, 1, p. 131-162. 10.1177/0019793919839031
Type
Article accepté pour publication ou publiéDate
2021Journal name
Industrial & Labor Relations ReviewVolume
74Number
1Publisher
Sage
Pages
131-162
Publication identifier
Metadata
Show full item recordAuthor(s)
Toubal, FaridCentre d'économie de la Sorbonne [CES]
Centre d'Etudes Prospectives et d'Informations Internationales [CEPII]
Center for Economic Policy Research [CEPR]
Sly, Nicholas
CESifo
Orefice, Gianluca
Centre d'Etudes Prospectives et d'Informations Internationales [CEPII]
Laboratoire d'Economie de Dauphine [LEDa]
Abstract (EN)
Using detailed administrative data that link French firms and workers over the years 2002 to 2007, the authors document declines in worker-level wages ahead of the time their employer is acquired by a foreign firm that are more than offset by gains in wages that emerge after cross-border acquisition. Specifically, relative wages fall by an estimated 7.5% in the years just before foreign acquisition, and they rise by approximately 12.5% in the years afterward. Changes in workers’ earnings are evident in both wages and in-kind payments given to workers. Moreover, the authors provide theoretical foundations for the conditional mean independence assumption that underlies commonly applied empirical techniques.Subjects / Keywords
Cross-border M&A; merger and acquisition; wage dynamics; in-kind payments; fair wages; multinational firmsRelated items
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