<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>The study attempts to estimate the causal relationship between foreign company ownership and wages that is driven by ownership per se, and not by observable or unobservable worker and firm characteristics. We employ proprietary data from surveys conducted by Sedlak &amp; Sedlak, a major Polish HR consulting firm, with our pooled cross-section data set comprising over 300,000 men and 250,000 women working in the Polish labor market between 2013 and 2017. The foreign-firm wage premium is estimated by several techniques, ranging from ordinary least squares and two-stage least squares to a recently developed frequentist RX-2SLS econometric procedure that relaxes IV assumptions via the exclusion restriction. Our major findings are: (1) regardless of gender, Polish workers employed by majority foreign capital firms earn a significant wage premium; and (2) the foreign-firm wage premium is substantially larger for women, suggesting that the wage policies used by foreign-owned firms in Poland have an equalizing effect on the gender wage gap.</p>
</abstract>

The study attempts to estimate the causal relationship between foreign company ownership and wages that is driven by ownership per se, and not by observable or unobservable worker and firm characteristics. We employ proprietary data from surveys conducted by Sedlak & Sedlak, a major Polish HR consulting firm, with our pooled cross-section data set comprising over 300,000 men and 250,000 women working in the Polish labor market between 2013 and 2017. The foreign-firm wage premium is estimated by several techniques, ranging from ordinary least squares and two-stage least squares to a recently developed frequentist RX-2SLS econometric procedure that relaxes IV assumptions via the exclusion restriction. Our major findings are: (1) regardless of gender, Polish workers employed by majority foreign capital firms earn a significant wage premium; and (2) the foreign-firm wage premium is substantially larger for women, suggesting that the wage policies used by foreign-owned firms in Poland have an equalizing effect on the gender wage gap.

Foreign ownership and gender differences in pay: causal evidence from a sample of Polish workers

International Journal of Contemporary Management

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

The study attempts to estimate the causal relationship between foreign company ownership and wages that is driven by ownership per se, and not by observable or...

Foreign ownership and gender differences in pay: causal evidence from a sample of Polish workers

Article Category: Research Article

Data publikacji: 27 lut 2024

Zakres stron: 75 - 91

DOI: https://doi.org/10.2478/ijcm-2024-0003

Słowa kluczowe
foreign-firm wage premium, Poland, causal effect, plausibly exogenous, local-to-zero Bayesian estimator, modified two-stage least squares procedure

© 2024 Larry W. Taylor et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Foreign ownership and gender differences in pay: causal evidence from a sample of Polish workers

Article Category: Research Article

Data publikacji: 27 lut 2024

Zakres stron: 75 - 91

DOI: https://doi.org/10.2478/ijcm-2024-0003

Słowa kluczoweforeign-firm wage premium, Poland, causal effect, plausibly exogenous, local-to-zero Bayesian estimator, modified two-stage least squares procedure

© 2024 Larry W. Taylor et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Słowa kluczowe
foreign-firm wage premium, Poland, causal effect, plausibly exogenous, local-to-zero Bayesian estimator, modified two-stage least squares procedure