Transplanting Corporate Culture Across International Borders: Foreign Direct Investment and Female Employment in Japan

18 Pages Posted: 10 May 2018

See all articles by Naomi Kodama

Naomi Kodama

Meiji Gakuin University

Beata S. Javorcik

University of Oxford - Department of Economics

Yukiko Abe

Hokkaido University

Date Written: May 2018

Abstract

This paper examines the effect of foreign ownership on gender‐related employment outcomes and work practices in Japan. The data indicate that the proportion of females among workers, managers, directors and board members is higher in foreign affiliates than in domestic firms of comparable size operating in the same industry. Foreign affiliates are also more likely to offer flexible working arrangements, telecommuting and childcare subsidies as well as employ foreign workers. These effects are visible almost exclusively in older affiliates. The analysis of foreign acquisitions combining propensity score matching with a difference in differences suggests that increase in the female labour share takes place a few years after the ownership change. All these patterns are in line with the view that it takes time to transplant corporate culture to an overseas affiliate.

Keywords: corporate culture, foreign direct investment, gender gap, MNEs

Suggested Citation

Kodama, Naomi and Javorcik, Beata S. and Abe, Yukiko, Transplanting Corporate Culture Across International Borders: Foreign Direct Investment and Female Employment in Japan (May 2018). The World Economy, Vol. 41, Issue 5, pp. 1148-1165, 2018, Available at SSRN: https://ssrn.com/abstract=3175646 or http://dx.doi.org/10.1111/twec.12612

Naomi Kodama (Contact Author)

Meiji Gakuin University ( email )

Shirokane-dai 1-2-37, Minato-ku
Tokyo, Tokyo, 108 108-8636
United States

Beata S. Javorcik

University of Oxford - Department of Economics

10 Manor Rd
Oxford, OX1 3UQ
United Kingdom

Yukiko Abe

Hokkaido University

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