Empirical studies at a firmor sector-level suggest that Foreign Direct Investment (FDI) increase wage dispersion by positively impact high skill wages. We contribute to the literature by examining the issue of FDI and wages on a large matched Swedish employer-employee data-set. Results suggest that foreign owned multinational firms (MNCs) tend to pay relatively high-skill wages, especially in c...

Panel data in many econometric applications exhibit a nested (hierarchical) structure. For example, data on "rms may be grouped by industry, or data on air pollution may be grouped by observation station within a city, city within a country, and by country. In these cases, one can control for unobserved group and sub-group e!ects using a nested-error component model. A double-nested unbalanced ...

We analyze price adjustments in the housing market after an exogenous shock. Exploring continuous-time records of prices around a major European airport (ZRH, Switzerland), and an unexpected change in flight regulations induced by the neighboring country Germany, we find that apartment rents take about two years to stabilize to a new equilibrium value. After this period we find a constant marku...

This paper presents some two-step estimators for a wide range of parametric panel data models with censored endogenous variables and sample selection bias. Our approach is to derive estimates of the unobserved heterogeneity responsible for the endogeneity/selection bias to include as additional explanatory variables in the primary equation. These are obtained through a decomposition of the redu...

Workplaces in the Primary Economy and Wage Pressure in the Secondary Labor Market This paper develops a two-sector general equilibrium model in which firms in the primary economy have to create workplaces prior to production and product market competition. For this, we introduce the endogenous sunk cost approach with two-stage decisions of firms from IO in the macro-labor literature. By hypothe...

This paper demonstrates how parsimonious models of sinusoidal functions can be used to fit spatially variant time series in which there is considerable variation of a periodic type. A typical shortcoming of such tools relates to the difficulty in capturing idiosyncratic variation in periodic models. The strategy developed here addresses this deficiency. While previous work has sought to overcom...

In this note we revisit the use of exclusion restrictions in the semiparametric binary choice panel data model introduced in Honore and Lewbel (2002). We show that in a dynamic panel data setting (where one of the pre-determined explanatory variables is the lagged dependent variable), the exclusion restriction in Honore and Lewbel (2002) implicitly requires serial independence condition on an o...

Pooled time-series, cross-sectional data on 110 Australian companies over the period 1992-1998 is employed to examine whether the trademarked variant of residual income known as economic value-added (EVA) is more highly associated with stock returns than more conventional accounting-based measures. These other measures of internal and external performance include earnings, net cash flow and res...

We contribute to the literature on Foreign Direct Investment and labour markets by examining wage differentials between domestic and foreign firms, drawing on a large Portuguese matched employer-employee panel. Using OLS, the foreign-firm premium is large and significantly positive but falls substantially when firm and worker controls are added. Moreover, the premium also does not vary monotoni...

Environmental crimes are unauthorized acts against the environment that are subject to criminal prosecution and sanction. While their deterrence e¤ect is largely unknown, policy is moving rapidly towards strengthening the role of criminal sanctioning in the context of environmental crime. This paper provides new evidence on the e¤ects of the use of criminal sanctions in environmental policy mak...