The takeover and selection effects of foreign ownership in Germany: an analysis using linked worker-firm data
Andrews M, Bellmann L, Schank T, Upward R (2009)
Publication Language: English
Publication Type: Journal article
Publication year: 2009
Journal
Publisher: Springer Verlag (Germany)
Book Volume: 145
Pages Range: 293-317
Journal Issue: 2
URI: https://EconPapers.repec.org/RePEc:not:notgep:07/08
Abstract
We use a linked employer-employee data set from Germany to estimate the wage effect of foreign-affiliates in East and West Germany. In addition, the wage effects of the large number of West German affiliates which are located in East Germany are also considered. The implemented techniques allow us to control both for worker- and plant-level unobserved components of earnings. We find large selection effects both in terms of worker and firm unobserved components of wages. The selection effect is larger for East German plants. Once it is taken into account, the genuine takeover effect is small and in some cases insignificantly different from zero. In contrast to the selection effect, the takeover effect is slightly larger in West Germany, where it amounts to 2.7 %.
Authors with CRIS profile
Lutz Bellmann
Lehrstuhl für Volkswirtschaftslehre, insbesondere Arbeitsökonomie (Stiftungslehrstuhl)
Thorsten Schank
Fachbereich Wirtschaftswissenschaften
Additional Organisation(s)
Involved external institutions
United Kingdom (GB)How to cite
APA:
Andrews, M., Bellmann, L., Schank, T., & Upward, R. (2009). The takeover and selection effects of foreign ownership in Germany: an analysis using linked worker-firm data. Review of World Economics, 145(2), 293-317.
MLA:
Andrews, Martyn, et al. "The takeover and selection effects of foreign ownership in Germany: an analysis using linked worker-firm data." Review of World Economics 145.2 (2009): 293-317.
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