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Multinationals, skills, and wage elasticities
Govt Inst Econ Res, Helsinki, Finland; Helsinki Sch Econ, Helsinki, Finland.
Res Inst Ind Econ, Stockholm, Sweden.
Örebro University, Swedish Business School at Örebro University. Res Inst Ind Econ, Stockholm, Sweden.
2010 (English)In: Review of World Economics, ISSN 1610-2878, E-ISSN 1610-2886, Vol. 146, no 2, p. 263-280Article in journal (Refereed) Published
Abstract [en]

The increase in foreign direct investments raises concerns about labor market consequences in many countries. It is feared that multinational firms are inclined to shift jobs abroad and increase job volatility. We use firm-level data to examine if multinationality and foreign ownership affect the wage elasticity of labor demand. Unlike previous studies, we distinguish the effect on different skill groups of employees. We find no general difference in wage elasticity between foreign and domestic firms but the wage elasticity is higher in multinational firms than in national firms, in particular for medium-skilled workers.

Place, publisher, year, edition, pages
2010. Vol. 146, no 2, p. 263-280
Keywords [en]
FDI, Cross-border acquisitions, Multinational enterprises, Foreign ownership, Labor demand, Skill groups
National Category
Economics
Research subject
Economics
Identifiers
URN: urn:nbn:se:oru:diva-12933DOI: 10.1007/s10290-009-0047-9ISI: 000278839100004OAI: oai:DiVA.org:oru-12933DiVA, id: diva2:383230
Available from: 2011-01-04 Created: 2011-01-03 Last updated: 2018-04-23Bibliographically approved

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Sjöholm, Fredrik

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