There is no statistically significant effect of foreign ownership on the unions’ bargaining power over employment or wages according to study. This could mean that concerns about foreign ownership in Sweden is unfounded.


Does foreign ownership of companies acting in Sweden induce effect on the employment and wage in Sweden? According to a study, there is no statistically significant effect of foreign ownership on the unions’ bargaining power over employment or wages. This result differs with some other studies which show relatively higher wages in foreign-owned firms than nationally owned firms. As there were Swedish rules limiting Foreign Direct Investments previously, the result of this study is very interesting and suggests that the concerns about foreign ownership in Sweden might have been unfounded.

The article “Foreign ownership and its effects on employment and wages: the case of Sweden” was published 2016 and data applied consists of 242 large Swedish manufacturing firms over a 25-years period.

Brännlund, R., Nordström, J., Stage, J., and Svedin, D., 2016. Foreign ownership and its effects on employment and wages: the case of Sweden. Journal of European Labor Studies. 5:8.