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

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

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
  1. 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
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