Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/263934 
Year of Publication: 
2022
Series/Report no.: 
Tinbergen Institute Discussion Paper No. TI 2022-014/V
Publisher: 
Tinbergen Institute, Amsterdam and Rotterdam
Abstract: 
We decompose the wage premium after foreign acquisitions of Dutch domestic firms into the con- stituent firm- and worker-level premia. Firm-level premia grow up to 3.5%, accounting for the major- ity of the acquisition premium. Worker-level premia by contrast, grow up to 1% and only materialize with delay, as the acquired firms hire workers with higher earnings capacity than domestic firms. Within firms, premia are also higher for workers with a relatively high earnings capacity. Though in- dustry variation and firm size class heterogeneity is considerable, the dominance of firm-level premia suggests that foreign acquisitions change firms beyond a workforce reshuffling.
Subjects: 
multinational firms
foreign acquisition
wage components
labor mobility
matched employer-employee data
AKM
JEL: 
J31
F23
G34
Document Type: 
Working Paper

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