Cross-Border Acquisitions, Multinationals and Wage Elasticities

Arbeitspapier

The growing number of cross-border acquisitions has in many countries raised concerns about labor demand consequences. In this study, we use detailed firm level data to examine how increased internationalization and multinational activity affect the volatility of employment, or rather, the wage elasticity of labor demand. We analyze whether the wage elasticity of labor demand differs between multinational and non-multinational firms as well as between foreign-owned and domestic firms, and we are able to distinguish between different skill groups of employees. Moreover, we separate between an acquisition effect and a general ownership effect. Our results do not show any general difference in wage elasticities between different types of firms.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IFN Working Paper ; No. 709

Classification and Topics

• Classification: Wirtschaft ; Trade and Labor Market Interactions ; International Investment; Long-term Capital Movements ; Multinational Firms; International Business ; Labor Demand
• Subject: FDI ; Cross-Border Acquisitions ; Multinational Enterprises ; Foreign Ownership ; Labor Demand ; Skill Groups ; GMM ; Multinationales Unternehmen ; Übernahme ; Arbeitsnachfrage ; Qualifikation ; Lohn ; Elastizität ; Schweden

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Hakkala, Katariina ; Heyman, Fredrik ; Sjöholm, Fredrik
• Event: Veröffentlichung
• (who): Research Institute of Industrial Economics (IFN)
• (where): Stockholm
• (when): 2007

Further information

• Handle: http://hdl.handle.net/10419/81268
• Last update: 10.03.2025, 11:42 AM CET