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Foreign ownership and gender differences in pay: causal evidence from a sample of Polish workers Cover

Foreign ownership and gender differences in pay: causal evidence from a sample of Polish workers

Open Access
|Feb 2024

Figures & Tables

Table 1.

Characteristics of workers by gender and type of employer

VariableMenWomen
Foreign firmsDomestic firmsForeign firmsDomestic firms
MeanStdDevMeanStdDevMeanStdDevMeanStdDev
Real total monthly earnings (Zlotys)7644.06626.55075.84371.36223.55235.23986.63067.2
Log (real total monthly earnings)8.7150.6378.3420.5648.5380.5858.1440.491
Age (years)33.88.235.210.032.87.435.19.3
Secondary school (%)2.314.93.317.82.415.45.021.8
Post-secondary school/no degree (%)18.739.024.643.011.131.415.135.8
Undergrad degree (%)16.937.516.036.713.934.614.134.8
Incomplete Master’s degree (%)3.919.43.518.33.618.72.816.5
Master’s degree (%)24.643.122.741.951.950.048.950.0
Master’s in engineering (%)29.745.722.641.815.636.312.032.5
Postgraduate training (%)15.936.614.034.725.243.423.842.6
MBA (%)2.314.91.110.31.612.70.67.8
Good or very good knowledge of English (%)72.444.754.249.875.642.952.749.9
Number of other foreign languages known at the good or very good levels*0.1970.4490.1850.4340.2990.5330.2370.477
Independent job search (%)53.749.952.949.956.149.654.649.8
Job search through employment bureau (%)0.99.63.217.51.411.75.522.9
Internal job recruitment (%)22.741.928.345.021.240.826.143.9
Job promotion (%)6.925.31.813.46.324.41.512.2
Instrumental variables (IV):
Ahpar (%)27.744.730.946.224.342.926.944.4
Gerpar (%)17.137.718.939.116.437.019.139.3
Gerww2 (%)21.240.917.838.219.339.419.239.4
Observations118,894208,41774,201174,996

1 Notes: Males were born years 1949–1999 and range in age from 18 to 64 at the time of the survey; females were born years 1954–1999 and range in age from 18 to 59 at the time of the survey. The reference educational group consists of those with secondary, basic vocational, lower secondary, or basic educational credentials. Not summarized in this table are 22 industry and 26 department dummy variables.

1* The ‘NgoodOth’ variable (corresponding to the number of other languages the employee knows, besides English) is coded from 0 to 4, inclusive, and hence cannot be put into percentage terms.

Table 2.

(Log) monthly-earning returns to foreign-firm employment

SpecificationsMenWomen
Without industry and department controlsWith industry and department controlsWithout industry and department controlsWith industry and department controls
Panel A: OLS estimation without using the IV variables as controls
Foreign ownership0.2315*** (0.0019)0.2252*** (0.0019)0.2621*** (0.0022)0.2315*** (0.0023)
Observations279,094279,081192,061192,048
Panel B: OLS estimation with using the IV variables as controls
Foreign ownership0.2302*** (0.0019)0.2231*** (0.0019)0.2581*** (0.0022)0.2256*** (0.0022)
Observations279,094279,081192,061192,048
Panel C: Traditional 2SLS estimation
Foreign ownership0.5398*** (0.0299)0.7161*** (0.0314)1.3936*** (0.0575)1.5407*** (0.0557)
Hausman test117.96***309.33***957.97***1,589.47***
Observations279,094279,081192,061192,048
Panel D: RX-2SLS estimation
Foreign ownership0.3557*** (0.0721)0.1253* (0.0688)0.6020*** (0.0717)0.6534*** (0.0634)
Hausman test3.04*2.0223.85***48.00***
Observations327,311327,296249,197249,182

1 Notes: The dependent variable is inflation-adjusted log monthly earnings, and Foreign ownership is instrumented by three regional dummy variables. Males were born years 1949–1999 and range in age from 18 to 64 at the time of the survey; females were born years 1954–1999 and range in age from 18 to 59 at the time of the survey. The Hausman test for exogeneity is constructed as the Wald test for whether the residuals from the first-stage regression have a zero coefficient when augmented to the structural model for log monthly earnings (estimated by OLS for the purpose of the Hausman test). Robust standard errors are reported in parentheses.

1* Statistical significance at 10 percent is indicated by,

1** at 5 percent by,

1*** and at 1 percent by.

1 The super-sample employed for RX-2SLS estimation (Panel D) includes a sector of firms where foreign ownership is precluded. The full set of estimates is available from the authors upon request.

DOI: https://doi.org/10.2478/ijcm-2024-0003 | Journal eISSN: 2449-8939 | Journal ISSN: 2449-8920
Language: English
Page range: 75 - 91
Published on: Feb 27, 2024
Published by: Jagiellonian University
In partnership with: Paradigm Publishing Services
Publication frequency: 1 issue per year

© 2024 Larry W. Taylor, Thomas J. Hyclak, Piotr Sedlak, Vera A. Adamchik, published by Jagiellonian University
This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.