Olga Lark, LU
Olga Lark will present a paper titled "Do Foreign Investors Transfer Their Gender Norms? Foreign Ownership and Gender Wage Gap".
Abstract: This paper studies the relationship between foreign ownership and the gender wage gap. In particular, we analyze to what extent the gender equality of the home country of investor might affect the gender wage differential in its affiliates abroad. To this end, we use matched employer-employee data for Sweden and find that gender norms of the home country of foreign direct investment (FDI) matter. Specifically, we show that the gender wage gap in foreign affiliates increases with the higher degree of gender inequality of its parent. This result, identified from a within spell variation in wages, is robust to inclusion of worker and firm controls, as well as sector, time, and region fixed effects. Our finding also suggest that the effect of foreign ownership on the gender wage gap exhibits substantial heterogeneity by investor home country.