Canadian Journal of Economics/Revue canadienne d économique· 2026Q2
Foreign ownership and transferring of gender norms
- 2citations
- Q2SCImago
- 2026year
Short summary
Foreign-owned subsidiaries in Sweden show a reduced gender pay gap when acquired by firms from countries with higher gender equality, suggesting a transfer of norms.
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Key points
- Foreign acquisitions from countries with higher gender equality reduce the gender pay gap in Swedish subsidiaries.
- Acquisitions from countries with lower gender equality show no significant impact on the gender pay gap.
- The study uses detailed matched employer-employee data from Sweden.
- A dynamic difference-in-differences model and high-dimensional fixed effects model were employed.
AI-generated from the title and abstract; the full text is not read.
Abstract
Abstract In this paper, we study foreign ownership as a vehicle for transferring gender norms across international borders. Using detailed matched employer‐employee data from Sweden, we analyze how the within‐firm gender pay gap is affected by the degree of gender inequality in the home country of foreign investors. The results suggest that home‐country gender norms matter: The pay gap between men and women in foreign‐owned subsidiaries tends to decrease with the degree of gender equality in the investors' home market. Specifically, we find that acquisitions from countries with higher levels of gender equality tend to reduce the gender pay gap, whereas acquisitions from countries with lower levels of gender equality have no significant impact. We identify the effect from within‐match variation in incomes and rely on a dynamic difference‐in‐differences model and a high‐dimensional fixed effects model.
The authors' abstract, as published at the source. Canadian Journal of Economics/Revue canadienne d économique, 2026 · DOI ↗
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