Swedish Multinationals and Competition from High- and Low-Wage Locations

Arbeitspapier

This study uses data on Swedish multinationals to estimate cross elasticities of labour demand in different locations. With a vertical decomposition of the firm's activities, whether there is substitution or complementarity between employment in different parts of the firm will depend on whether wage changes lead to a relocation of activities or simply to changes in marginal costs and/or demand for inputs in other parts of the firms. We find that there is some evidence of a substitutionary relationship between employment in the Swedish parts of the firms and employment in other high-income locations, but we do not find any evidence of substitution stemming from employment in low-income locations. We find mainly a relationshipof complementarity between employment in different affiliates.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IUI Working Paper ; No. 523

Classification and Topics

• Classification: Wirtschaft ; Multinational Firms; International Business ; Labor Demand
• Subject: Labour demand ; Multinational firms ; Vertically integrated firms ; Räumlicher Wettbewerb ; Arbeitsnachfrage ; Vertikale Integration ; Multinationales Unternehmen ; Schweden

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Braconier, Henrik ; Ekholm, Karolina
• Event: Veröffentlichung
• (who): The Research Institute of Industrial Economics (IUI)
• (where): Stockholm
• (when): 1999

Further information

• Handle: http://hdl.handle.net/10419/94807
• Last update: 10.03.2025, 11:42 AM CET