Transplanting Corporate Culture across International Borders: FDI and female employment in Japan

Author Name KODAMA Naomi (Consulting Fellow, RIETI) / Beata S. JAVORCIK (University of Oxford) / ABE Yukiko (Hokkaido University)
Creation Date/NO. February 2016 16-E-015
Research Project The Effect of Diversity on Economic Growth and Business Competitiveness
Download / Links


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, and the gender wage gap is smaller, 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 child care subsidies. These effects are mostly visible in older affiliates and are more pronounced in affiliates with a larger foreign ownership share. These patterns are in line with the view that it takes time to transplant corporate culture to an overseas affiliate and that a higher ownership stake may facilitate this process.