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

Journal for Labour Market Research

Table 6 Wage difference between domestic workers with/without outside work experience

	Dependent variable: log daily wage
	OLS	Firm fixed effects
Coefficients (t-test)
Past MNE experience (PF)	0.060*** (4.0)	0.005 (1.0)
Future MNE experience (FF)	0.012 (0.9)	0.001 (0.6)
Past domestic experience (PD)	− 0.052*** (5.6)	− 0.030*** (7.3)
Future domestic experience (FD)	− 0.031*** (3.5)	− 0.016*** (3.6)
Differences by type of outside experience (F-test)
Past MNE − past domestic	0.112*** (61.6)	0.035*** (53.4)
Future MNE − future domestic	0.043*** (15.0)	0.017** (5.5)
Past MNE − future MNE	0.048** (6.3)	0.004 (0.4)
Past domestic − future domestic	− 0.021** (4.2)	− 0.014*** (10.0)
Double difference	0.069*** (15.0)	0.018*** (11.5)
aR2/within R2	0.453	0.342

Regression estimates. The reported coefficients are significant at the *0.1, **0.05, ***0.01 level. Unmarked coefficients are not significant at the 0.1 level. Sample: 3,841,561 person-months belonging to 153,323 persons and 18,510 firms. The sample covers domestic firm employees in firms employing at least one worker with past or future experience in foreign-owned or domestic firms, and one incumbent worker. The coefficients measure wage advantages relative to incumbent workers. Observations for 2005–2009 are used. Estimation: reghdfe without and with firm fixed effects. The standard errors are adjusted for clustering by persons and firms. Controls: person, job and firm controls, and sector–year interactions