IDEAS home Printed from https://ideas.repec.org/p/hai/wpaper/202025.html
   My bibliography  Save this paper

Foreign Ownership, Exporting and Gender Wage Gaps: Evidence from Japanese Linked Employer-Employee Data

Author

Listed:
  • Theresa M. Greaney

    (University of Hawai‘i)

  • Ayumu Tanaka

    (Chuo University)

Abstract

We explore potential relationships between international economic activities and gender wage gaps (GWGs) using linked employer-employee data for Japan. We find evidence that exporting and multinational activities are associated with reduced GWGs. Domestic-owned firms that neither export nor invest abroad (i.e., domestic-only firms) report the largest GWG, followed by Japanese-owned multinational enterprises(JMNE), then by locally-owned exporters that do not invest abroad and finally by foreign-owned multinational enterprises (FMNE). We separate FMNE by mode of entry and confirm that FMNE established by greenfield investment deviate more than FMNE established by merger and acquisition from domestic-only firms in terms of wages. Greenfield- born FMNE are associated with the smallest GWG and largest gender- neutral wage premium among the firm types. The estimated GWG among Greenfield-born FMNE is almost 12 percentage-points lower than the 26.8 percent prevailing at domestic-only firms.

Suggested Citation

  • Theresa M. Greaney & Ayumu Tanaka, 2020. "Foreign Ownership, Exporting and Gender Wage Gaps: Evidence from Japanese Linked Employer-Employee Data," Working Papers 202025, University of Hawaii at Manoa, Department of Economics.
    • Handle: RePEc:hai:wpaper:202025
    as

    Download full text from publisher

    File URL: http://www.economics.hawaii.edu/research/workingpapers/WP_20-25.pdf
    File Function: First version, 2020
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Andrew B. Bernard & J. Bradford Jensen, 1995. "Exporters, Jobs, and Wages in U.S. Manufacturing: 1976-1987," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 26(1995 Micr), pages 67-119.
    2. Bernard, Andrew B. & Bradford Jensen, J., 1999. "Exceptional exporter performance: cause, effect, or both?," Journal of International Economics, Elsevier, vol. 47(1), pages 1-25, February.
    3. Eric A. Verhoogen, 2008. "Trade, Quality Upgrading, and Wage Inequality in the Mexican Manufacturing Sector," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 123(2), pages 489-530.
    4. Thorsten Schank & Claus Schnabel & Joachim Wagner, 2016. "Higher Wages in Exporting Firms: Self-selection, Export Effect, or Both? First Evidence from Linked Employer–Employee Data," World Scientific Book Chapters, in: Microeconometrics of International Trade, chapter 6, pages 215-241, World Scientific Publishing Co. Pte. Ltd..
    5. Sandra E. Black & Elizabeth Brainerd, 2004. "Importing Equality? The Impact of Globalization on Gender Discrimination," ILR Review, Cornell University, ILR School, vol. 57(4), pages 540-559, July.
    6. Heyman, Fredrik & Sjoholm, Fredrik & Tingvall, Patrik Gustavsson, 2007. "Is there really a foreign ownership wage premium? Evidence from matched employer-employee data," Journal of International Economics, Elsevier, vol. 73(2), pages 355-376, November.
    7. Tang, Heiwai & Zhang, Yifan, 2021. "Do multinationals transfer culture? Evidence on female employment in China," Journal of International Economics, Elsevier, vol. 133(C).
    8. Sourafel Girma & Holger Görg, 2016. "Evaluating the foreign ownership wage premium using a difference-in-differences matching approach," World Scientific Book Chapters, in: MULTINATIONAL ENTERPRISES AND HOST COUNTRY DEVELOPMENT Volume 53: World Scientific Studies in International Economics, chapter 2, pages 17-32, World Scientific Publishing Co. Pte. Ltd..
    9. Kato, Takao & Kodama, Naomi, 2017. "Women in the Workplace and Management Practices: Theory and Evidence," IZA Discussion Papers 10788, Institute of Labor Economics (IZA).
    10. Munch, Jakob Roland & Skaksen, Jan Rose, 2008. "Human capital and wages in exporting firms," Journal of International Economics, Elsevier, vol. 75(2), pages 363-372, July.
    11. KAWAGUCHI Daiji, 2011. "Applying the Mincer Wage Equation to Japanese Data (Japanese)," Discussion Papers (Japanese) 11026, Research Institute of Economy, Trade and Industry (RIETI).
    12. Nicholas Bloom & John Van Reenen, 2007. "Measuring and Explaining Management Practices Across Firms and Countries," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 122(4), pages 1351-1408.
    13. Priit Vahter & Jaan Masso, 2019. "The contribution of multinationals to wage inequality: foreign ownership and the gender pay gap," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 155(1), pages 105-148, February.
    14. Pedro S. Martins, 2011. "Paying More To Hire The Best? Foreign Firms, Wages, And Worker Mobility," Economic Inquiry, Western Economic Association International, vol. 49(2), pages 349-363, April.
    15. Becker, Gary S., 1971. "The Economics of Discrimination," University of Chicago Press Economics Books, University of Chicago Press, edition 2, number 9780226041162.
    16. Jacob A. Mincer, 1974. "Introduction to "Schooling, Experience, and Earnings"," NBER Chapters, in: Schooling, Experience, and Earnings, pages 1-4, National Bureau of Economic Research, Inc.
    17. Bernard, Andrew B. & Jensen, J. Bradford, 1997. "Exporters, skill upgrading, and the wage gap," Journal of International Economics, Elsevier, vol. 42(1-2), pages 3-31, February.
    18. Francine D. Blau & Lawrence M. Kahn, 2003. "Understanding International Differences in the Gender Pay Gap," Journal of Labor Economics, University of Chicago Press, vol. 21(1), pages 106-144, January.
    19. Ono, Hiroshi, 2010. "Lifetime employment in Japan: Concepts and measurements," Journal of the Japanese and International Economies, Elsevier, vol. 24(1), pages 1-27, March.
    20. Oaxaca, Ronald, 1973. "Male-Female Wage Differentials in Urban Labor Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 693-709, October.
    21. Luigi Guiso & Paola Sapienza & Luigi Zingales, 2006. "Does Culture Affect Economic Outcomes?," Journal of Economic Perspectives, American Economic Association, vol. 20(2), pages 23-48, Spring.
    22. Jaerim Choi & Theresa M. Greaney, 2022. "Global Influences On Gender Inequality: Evidence From Female Employment In Korea," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 63(1), pages 291-328, February.
    23. Naomi Kodama & Beata S. Javorcik & Yukiko Abe, 2018. "Transplanting corporate culture across international borders: Foreign direct investment and female employment in Japan," The World Economy, Wiley Blackwell, vol. 41(5), pages 1148-1165, May.
    24. Bøler, Esther Ann & Javorcik, Beata & Ulltveit-Moe, Karen Helene, 2018. "Working across time zones: Exporters and the gender wage gap," Journal of International Economics, Elsevier, vol. 111(C), pages 122-133.
    25. Brian Aitken & Ann Harrison & Robert E. Lipsey, 2022. "Wages and foreign ownership A comparative study of Mexico, Venezuela, and the United States," World Scientific Book Chapters, in: Globalization, Firms, and Workers, chapter 4, pages 61-87, World Scientific Publishing Co. Pte. Ltd..
    26. Juhn, Chinhui & Ujhelyi, Gergely & Villegas-Sanchez, Carolina, 2014. "Men, women, and machines: How trade impacts gender inequality," Journal of Development Economics, Elsevier, vol. 106(C), pages 179-193.
    27. Hoshi, Takeo & Kiyota, Kozo, 2019. "Potential for inward foreign direct investment in Japan," Journal of the Japanese and International Economies, Elsevier, vol. 52(C), pages 32-52.
    28. Jacob A. Mincer, 1974. "Schooling, Experience, and Earnings," NBER Books, National Bureau of Economic Research, Inc, number minc74-1.
    29. Remco H. Oostendorp, 2009. "Globalization and the Gender Wage Gap," The World Bank Economic Review, World Bank, vol. 23(1), pages 141-161, January.
    30. Seguino, Stephanie, 2000. "The Effects of Structural Change and Economic Liberalisation on Gender Wage Differentials in South Korea and Taiwan," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 24(4), pages 437-459, July.
    31. Theresa M. Greaney & Yao Li, 2017. "Examining Determinants of Foreign Wage Premiums in China," The World Economy, Wiley Blackwell, vol. 40(10), pages 2056-2077, October.
    32. Alan S. Blinder, 1973. "Wage Discrimination: Reduced Form and Structural Estimates," Journal of Human Resources, University of Wisconsin Press, vol. 8(4), pages 436-455.
    33. Günseli Berik & Yana van der Meulen Rodgers & Joseph E. Zveglich, 2004. "International Trade and Gender Wage Discrimination: Evidence from East Asia," Review of Development Economics, Wiley Blackwell, vol. 8(2), pages 237-254, May.
    34. Thorsten Schank & Claus Schnabel & Joachim Wagner, 2016. "Do Exporters Really Pay Higher Wages? First Evidence from German Linked Employer–Employee Data," World Scientific Book Chapters, in: Microeconometrics of International Trade, chapter 5, pages 177-213, World Scientific Publishing Co. Pte. Ltd..
    35. A. Colin Cameron & Pravin K. Trivedi, 2010. "Microeconometrics Using Stata, Revised Edition," Stata Press books, StataCorp LP, number musr, March.
    36. Hijzen, Alexander & Martins, Pedro S. & Schank, Thorsten & Upward, Richard, 2013. "Foreign-owned firms around the world: A comparative analysis of wages and employment at the micro-level," European Economic Review, Elsevier, vol. 60(C), pages 170-188.
    37. Nicholas Bloom & Raffaella Sadun & John Van Reenen, 2012. "Americans Do IT Better: US Multinationals and the Productivity Miracle," American Economic Review, American Economic Association, vol. 102(1), pages 167-201, February.
    38. Nicholas Bloom & Raffaella Sadun, 2012. "The Organization of Firms Across Countries," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 127(4), pages 1663-1705.
    39. Kawaguchi, Daiji, 2007. "A market test for sex discrimination: Evidence from Japanese firm-level panel data," International Journal of Industrial Organization, Elsevier, vol. 25(3), pages 441-460, June.
    40. Roger Koenker & Kevin F. Hallock, 2001. "Quantile Regression," Journal of Economic Perspectives, American Economic Association, vol. 15(4), pages 143-156, Fall.
    41. Lipsey, Robert E. & Sjoholm, Fredrik, 2004. "Foreign direct investment, education and wages in Indonesian manufacturing," Journal of Development Economics, Elsevier, vol. 73(1), pages 415-422, February.
    42. Hara, Hiromi, 2018. "The gender wage gap across the wage distribution in Japan: Within- and between-establishment effects," Labour Economics, Elsevier, vol. 53(C), pages 213-229.
    43. Jacob A. Mincer, 1974. "Schooling and Earnings," NBER Chapters, in: Schooling, Experience, and Earnings, pages 41-63, National Bureau of Economic Research, Inc.
    44. Kawaguchi, Akira, 2015. "Internal labor markets and gender inequality: Evidence from Japanese micro data, 1990–2009," Journal of the Japanese and International Economies, Elsevier, vol. 38(C), pages 193-213.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ayumu Tanaka, 2022. "Higher wages in exporters and multinational firms evidence from linked employer–employee data," International Economics and Economic Policy, Springer, vol. 19(1), pages 51-78, February.
    2. Jaerim Choi & Theresa M. Greaney, 2022. "Global Influences On Gender Inequality: Evidence From Female Employment In Korea," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 63(1), pages 291-328, February.
    3. Victor Stolzenburg & Marianne Matthee & Caro Janse van Rensburg & Carli Bezuidenhout, . "Foreign direct investment and gender inequality: evidence from South Africa," UNCTAD Transnational Corporations Journal, United Nations Conference on Trade and Development.
    4. Zhou, Chensong & Zhang, Xiangzhi & Xiong, Lingyun & Chen, Chuanyong, 2023. "Merger and acquisition performance commitments and shareholding reductions," Finance Research Letters, Elsevier, vol. 57(C).
    5. Kimitaka Nishitani & Akira Kawaguchi, 2022. "Mitigating Gender Inequality in the Workplace: Toward Sustainable Development Through Institutional Changes," Discussion Paper Series DP2022-07, Research Institute for Economics & Business Administration, Kobe University, revised May 2022.
    6. SASAHARA Akira & MORI Hiroaki, 2021. "The Effects of Trade on the Gender Gaps: A Model-based Quantitative Investigation," Discussion papers 21076, Research Institute of Economy, Trade and Industry (RIETI).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Halvarsson, Daniel & Lark, Olga & Gustavsson Tingvall, Patrik, 2022. "Foreign Ownership and Transferring of Gender Norms," Working Paper Series 1433, Research Institute of Industrial Economics.
    2. Ayumu Tanaka, 2018. "Why Do Exporters and Multinational Firms Pay Higher Wages?:Evidence from Japanese Linked Employer–Employee Data," Discussion papers e-17-013, Graduate School of Economics , Kyoto University.
    3. TANAKA Ayumu, 2015. "Wage Premiums for Exporters and Multinational Enterprises: Evidence from Japanese linked employer-employee data," Discussion papers 15106, Research Institute of Economy, Trade and Industry (RIETI).
    4. Halvarsson, Daniel & Lark, Olga & Gustavsson Tingvall, Patrik, 2022. "Foreign Ownership and Transferring of Gender Norms," Working Papers 2022:6, Lund University, Department of Economics.
    5. Ayumu Tanaka, 2022. "Higher wages in exporters and multinational firms evidence from linked employer–employee data," International Economics and Economic Policy, Springer, vol. 19(1), pages 51-78, February.
    6. Vu, Van Huong, 2012. "Does export participation affect wages and employment quality? the case of Vietnamese SMEs," MPRA Paper 38696, University Library of Munich, Germany.
    7. Lark, Olga & Videnord, Josefin, 2023. "Do Exporters Import Gender Inequality?," Working Papers 2023:6, Lund University, Department of Economics.
    8. Magda, Iga & Salach, Katarzyna, 2019. "Gender Pay Gap Patterns in Domestic and Foreign-Owned Firms," IZA Discussion Papers 12453, Institute of Labor Economics (IZA).
    9. Iga Magda & Katarzyna Sałach, 2021. "Gender pay gaps in domestic and foreign-owned firms," Empirical Economics, Springer, vol. 61(4), pages 2237-2263, October.
    10. Esther Ann BØLER & Beata Smarzynska JAVORCIK & Karen Helene ULLTVEI-MOE, 2015. "Globalization: A Woman's Best Friend? Exporters and the Gender Wage Gap," Working Papers DP-2015-25, Economic Research Institute for ASEAN and East Asia (ERIA).
    11. Priit Vahter & Jaan Masso, 2019. "The contribution of multinationals to wage inequality: foreign ownership and the gender pay gap," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 155(1), pages 105-148, February.
    12. Paulina Broniatowska & Paweł Strawiński, 2021. "Foreign- and domestic firm ownership and its impact on wages. Evidence from Poland," European Journal of Industrial Relations, , vol. 27(4), pages 445-466, December.
    13. Kong, Dongmin & Kong, Gaowen & Pang, Lirang & Zhang, Jian, 2018. "Who gets the wage premium from export: Top managers or employees?," International Review of Economics & Finance, Elsevier, vol. 58(C), pages 356-370.
    14. Ishan Ghosh & Mario Larch & Irina Murtazashvili & Yoto V. Yotov, 2022. "Negative Trade Shocks and Gender Inequality: Evidence from the USA," Economica, London School of Economics and Political Science, vol. 89(355), pages 564-591, July.
    15. Victor Stolzenburg & Marianne Matthee & Caro Janse van Rensburg & Carli Bezuidenhout, . "Foreign direct investment and gender inequality: evidence from South Africa," UNCTAD Transnational Corporations Journal, United Nations Conference on Trade and Development.
    16. Carli Bezuidenhout & Marianne Matthee & Neil Rankin, 2021. "Exporting and the wage premium: The case of South African manufacturing firms," Review of Development Economics, Wiley Blackwell, vol. 25(4), pages 2031-2051, November.
    17. Jaerim Choi & Theresa M. Greaney, 2022. "Global Influences On Gender Inequality: Evidence From Female Employment In Korea," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 63(1), pages 291-328, February.
    18. Anja Heinze & Elke Wolf, 2010. "The intra-firm gender wage gap: a new view on wage differentials based on linked employer–employee data," Journal of Population Economics, Springer;European Society for Population Economics, vol. 23(3), pages 851-879, June.
    19. Bøler, Esther Ann & Javorcik, Beata & Ulltveit-Moe, Karen Helene, 2018. "Working across time zones: Exporters and the gender wage gap," Journal of International Economics, Elsevier, vol. 111(C), pages 122-133.
    20. Fuchs, Michaela & Rossen, Anja & Weyh, Antje & Wydra-Somaggio, Gabriele, 2019. "Why do women earn more than men in some regions? : Explaining regional differences in the gender pay gap in Germany," IAB-Discussion Paper 201911, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].

    More about this item

    Keywords

    gender wage gap; wage premium; exporters; multinational enterprises;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hai:wpaper:202025. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Web Technician (email available below). General contact details of provider: https://edirc.repec.org/data/deuhius.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.