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Multinationals, skills, and wage elasticities

Nilsson-Hakkala, Katariina LU ; Heyman, Fredrik LU and Sjöholm, Fredrik LU (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.
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author
publishing date
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
2018-05-29 10:45:40
@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},
  keyword      = {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},
  volume       = {146},
  year         = {2010},
}