Arbeitspapier

Domestic multinationals, foreign affiliates, and labour demand elasticities

Using information on a panel of multinational firms operating in the United Kingdom from 1996 to 2005, we find that labour demand in domestic multinationals is less sensitive to labour cost changes than in foreign multinationals. This difference in the wage elasticity of labour demand persists even when we control for the skill intensity of firms or their level of intangible assets. This is in line with an interpretation that the provision of headquarter services in domestic multinational firms protects against strong fluctuations in labour demand. Overall, our results suggest that the wage elasticity of labour demand is about 40 percent lower in domestic than in foreign multinationals.

Sprache
Englisch

Erschienen in
Series: IZA Discussion Papers ; No. 7061

Klassifikation
Wirtschaft
Multinational Firms; International Business
Labor Demand
Human Capital; Skills; Occupational Choice; Labor Productivity
Thema
labour demand elasticity
multinational firms
headquarter services
skill intensity
Multinationales Unternehmen
Arbeitsnachfrage
Lohn
Preiselastizität
Unternehmenszentrale
Schätzung
Großbritannien

Ereignis
Geistige Schöpfung
(wer)
Godart, Olivier N.
Görg, Holger
Greenaway, David
Ereignis
Veröffentlichung
(wer)
Institute for the Study of Labor (IZA)
(wo)
Bonn
(wann)
2012

Handle
Letzte Aktualisierung
10.03.2025, 11:42 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
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Objekttyp

  • Arbeitspapier

Beteiligte

  • Godart, Olivier N.
  • Görg, Holger
  • Greenaway, David
  • Institute for the Study of Labor (IZA)

Entstanden

  • 2012

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