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


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Characteristics of workers by gender and type of employer

Variable Men Women
Foreign firms Domestic firms Foreign firms Domestic firms
Mean StdDev Mean StdDev Mean StdDev Mean StdDev
Real total monthly earnings (Zlotys) 7644.0 6626.5 5075.8 4371.3 6223.5 5235.2 3986.6 3067.2
Log (real total monthly earnings) 8.715 0.637 8.342 0.564 8.538 0.585 8.144 0.491
Age (years) 33.8 8.2 35.2 10.0 32.8 7.4 35.1 9.3
Secondary school (%) 2.3 14.9 3.3 17.8 2.4 15.4 5.0 21.8
Post-secondary school/no degree (%) 18.7 39.0 24.6 43.0 11.1 31.4 15.1 35.8
Undergrad degree (%) 16.9 37.5 16.0 36.7 13.9 34.6 14.1 34.8
Incomplete Master’s degree (%) 3.9 19.4 3.5 18.3 3.6 18.7 2.8 16.5
Master’s degree (%) 24.6 43.1 22.7 41.9 51.9 50.0 48.9 50.0
Master’s in engineering (%) 29.7 45.7 22.6 41.8 15.6 36.3 12.0 32.5
Postgraduate training (%) 15.9 36.6 14.0 34.7 25.2 43.4 23.8 42.6
MBA (%) 2.3 14.9 1.1 10.3 1.6 12.7 0.6 7.8
Good or very good knowledge of English (%) 72.4 44.7 54.2 49.8 75.6 42.9 52.7 49.9
Number of other foreign languages known at the good or very good levels* 0.197 0.449 0.185 0.434 0.299 0.533 0.237 0.477
Independent job search (%) 53.7 49.9 52.9 49.9 56.1 49.6 54.6 49.8
Job search through employment bureau (%) 0.9 9.6 3.2 17.5 1.4 11.7 5.5 22.9
Internal job recruitment (%) 22.7 41.9 28.3 45.0 21.2 40.8 26.1 43.9
Job promotion (%) 6.9 25.3 1.8 13.4 6.3 24.4 1.5 12.2
Instrumental variables (IV):
Ahpar (%) 27.7 44.7 30.9 46.2 24.3 42.9 26.9 44.4
Gerpar (%) 17.1 37.7 18.9 39.1 16.4 37.0 19.1 39.3
Gerww2 (%) 21.2 40.9 17.8 38.2 19.3 39.4 19.2 39.4
Observations 118,894 208,417 74,201 174,996

(Log) monthly-earning returns to foreign-firm employment

Specifications Men Women
Without industry and department controls With industry and department controls Without industry and department controls With industry and department controls
Panel A: OLS estimation without using the IV variables as controls
Foreign ownership 0.2315*** (0.0019) 0.2252*** (0.0019) 0.2621*** (0.0022) 0.2315*** (0.0023)
Observations 279,094 279,081 192,061 192,048
Panel B: OLS estimation with using the IV variables as controls
Foreign ownership 0.2302*** (0.0019) 0.2231*** (0.0019) 0.2581*** (0.0022) 0.2256*** (0.0022)
Observations 279,094 279,081 192,061 192,048
Panel C: Traditional 2SLS estimation
Foreign ownership 0.5398*** (0.0299) 0.7161*** (0.0314) 1.3936*** (0.0575) 1.5407*** (0.0557)
Hausman test 117.96*** 309.33*** 957.97*** 1,589.47***
Observations 279,094 279,081 192,061 192,048
Panel D: RX-2SLS estimation
Foreign ownership 0.3557*** (0.0721) 0.1253* (0.0688) 0.6020*** (0.0717) 0.6534*** (0.0634)
Hausman test 3.04* 2.02 23.85*** 48.00***
Observations 327,311 327,296 249,197 249,182