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Leaving the multinational : The likelihood and nature of employee mobility from MNEs

Andersson, Martin LU ; Castellani, Davide LU ; Fassio, Claudio LU and Jienwatcharamongkhol, Viroj LU (2022) In Journal of International Business Studies 53(5). p.936-949
Abstract

The mobility of workers from multinational enterprises (MNEs) to other local firms is increasingly recognized as an important externality mechanism. However, MNEs have strong incentives to curb this mobility to prevent leakage of firm-specific assets. This research note investigates the likelihood and nature of such mobility patterns. Using longitudinal, matched employer–employee data for Sweden with detailed information on individuals, establishments, and firms, we find that workers employed in MNEs are more likely to leave their employers compared to similar workers employed in non-MNEs with similar characteristics. This effect is particularly strong for high-wage workers and managers. While we find that workers who leave MNEs are... (More)

The mobility of workers from multinational enterprises (MNEs) to other local firms is increasingly recognized as an important externality mechanism. However, MNEs have strong incentives to curb this mobility to prevent leakage of firm-specific assets. This research note investigates the likelihood and nature of such mobility patterns. Using longitudinal, matched employer–employee data for Sweden with detailed information on individuals, establishments, and firms, we find that workers employed in MNEs are more likely to leave their employers compared to similar workers employed in non-MNEs with similar characteristics. This effect is particularly strong for high-wage workers and managers. While we find that workers who leave MNEs are more likely to move to other MNEs, our results identify significant mobility toward start-ups, thus leading to important industrial dynamics in the host country. We discuss the implications of these results for research on the externalities from MNEs, and international business theory.

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author
; ; and
organization
publishing date
type
Contribution to journal
publication status
published
subject
keywords
externalities, firm-specific advantages, labor mobility, logit, multinational enterprises, start-ups, strategic human capital
in
Journal of International Business Studies
volume
53
issue
5
pages
936 - 949
publisher
Palgrave Macmillan
external identifiers
  • scopus:85122856675
ISSN
0047-2506
DOI
10.1057/s41267-021-00490-7
language
English
LU publication?
yes
id
63cffba3-a5ba-40f1-8385-326c048e46dc
date added to LUP
2022-02-24 13:26:35
date last changed
2024-01-20 15:23:55
@article{63cffba3-a5ba-40f1-8385-326c048e46dc,
  abstract     = {{<p>The mobility of workers from multinational enterprises (MNEs) to other local firms is increasingly recognized as an important externality mechanism. However, MNEs have strong incentives to curb this mobility to prevent leakage of firm-specific assets. This research note investigates the likelihood and nature of such mobility patterns. Using longitudinal, matched employer–employee data for Sweden with detailed information on individuals, establishments, and firms, we find that workers employed in MNEs are more likely to leave their employers compared to similar workers employed in non-MNEs with similar characteristics. This effect is particularly strong for high-wage workers and managers. While we find that workers who leave MNEs are more likely to move to other MNEs, our results identify significant mobility toward start-ups, thus leading to important industrial dynamics in the host country. We discuss the implications of these results for research on the externalities from MNEs, and international business theory.</p>}},
  author       = {{Andersson, Martin and Castellani, Davide and Fassio, Claudio and Jienwatcharamongkhol, Viroj}},
  issn         = {{0047-2506}},
  keywords     = {{externalities; firm-specific advantages; labor mobility; logit; multinational enterprises; start-ups; strategic human capital}},
  language     = {{eng}},
  number       = {{5}},
  pages        = {{936--949}},
  publisher    = {{Palgrave Macmillan}},
  series       = {{Journal of International Business Studies}},
  title        = {{Leaving the multinational : The likelihood and nature of employee mobility from MNEs}},
  url          = {{http://dx.doi.org/10.1057/s41267-021-00490-7}},
  doi          = {{10.1057/s41267-021-00490-7}},
  volume       = {{53}},
  year         = {{2022}},
}