Wage gains from foreign ownership: evidence from linked employer–employee data

Journal for Labour Market Research

Table 3 Estimates of the foreign-domestic wage gap for skilled workers, 2003–2011

Specifications:	(1)	(2)	(3)	(4)	(5)	(6)
Model A
Foreign-owned	0.745 (25.5)	0.763 (20.3)	0.718 (31.6)	0.437 (23.4)	0.236 (28.6)	0.026 (3.5)
aR2/within R2	0.260	0.329	0.414	0.480	0.238	0.103
Model B
Always foreign-owned	0.794 (25.7)	0.817 (29.5)	0.772 (31.3)	0.507 (23.3)	0.307 (26.8)
Temporarily foreign-owned	0.569 (8.1)	0.574 (8.7)	0.564 (12.6)	0.334 (5.2)	0.209 (14.1)	0.026 (3.5)
Temporarily domestic	0.408 (10.5)	0.408 (10.5)	0.462 (11.3)	0.269 (8.7)	0.157 (11.6)
aR2/within R2	0.267	0.327	0.422	0.482	0.242	0.103
Controls
Sector × year	Yes	Yes	Yes	Yes	Yes	Yes
Person	No	Yes	Yes	Yes	Yes	Yes
Job	No	No	Yes	Yes	Yes	Yes
Firm	No	No	No	Yes	Yes	Yes
Person FE	No	No	No	No	Yes	Yes
Firm FE	No	No	No	No	No	Yes

All coefficients are significant at 0.01 level, t-values in parentheses. The standard errors are adjusted for clustering by persons and firms. Sample: 19,961,622 person-months belonging to 344,203 skilled workers in 119,580 firms. Singleton observations are excluded from the panel regressions Dependent variable: log daily wage in the given month relative to the national mean. Reference categories: employed in a domestic firm (Model A), employed in an’ always domestic’ firm (Model B). Controls: person, job and firm characteristics plus sector–year interactions. See Appendix 1: Table 12 for variable definitions. Specifications 5 and 6 include only time-varying covariates and worker and firm fixed effects. Estimation: all models were estimated with Stata’s reghdfe models