Multinationals, skills, and wage elasticities
(2010) In Review of World Economics 146(2). p.263-280- Abstract
- 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.
Please use this url to cite or link to this publication:
https://lup.lub.lu.se/record/f8835cb4-2207-429b-9a35-54c7463cee76
- author
- Nilsson-Hakkala, Katariina LU ; Heyman, Fredrik LU and Sjöholm, Fredrik LU
- publishing date
- 2010
- type
- Contribution to journal
- publication status
- published
- subject
- keywords
- cross-border acquisitions, multinational enterprises, foreign ownership, labor demand, skill groups, J23, F16, F21, F23
- in
- Review of World Economics
- volume
- 146
- issue
- 2
- pages
- 18 pages
- publisher
- Springer
- external identifiers
-
- scopus:77953916647
- ISSN
- 1610-2878
- DOI
- 10.1007/s10290-009-0047-9
- language
- English
- LU publication?
- no
- id
- f8835cb4-2207-429b-9a35-54c7463cee76
- date added to LUP
- 2017-10-06 16:07:55
- date last changed
- 2022-04-09 19:23:59
@article{f8835cb4-2207-429b-9a35-54c7463cee76, abstract = {{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.}}, author = {{Nilsson-Hakkala, Katariina and Heyman, Fredrik and Sjöholm, Fredrik}}, issn = {{1610-2878}}, keywords = {{cross-border acquisitions; multinational enterprises; foreign ownership; labor demand; skill groups; J23; F16; F21; F23}}, language = {{eng}}, number = {{2}}, pages = {{263--280}}, publisher = {{Springer}}, series = {{Review of World Economics}}, title = {{Multinationals, skills, and wage elasticities}}, url = {{http://dx.doi.org/10.1007/s10290-009-0047-9}}, doi = {{10.1007/s10290-009-0047-9}}, volume = {{146}}, year = {{2010}}, }