Arbeitspapier
Location choice and employment decisions: a comparison of German and Swedish multinationals
Using data for German and Swedish multinational enterprises (MNEs), this paper assesses international employment patterns. It analyzes determinants of location choice and the degree of substitutability of labor across locations. Countries with highly skilled labor forces attract German MNEs, but we nd no such evidence for Swedish MNEs. This is consistent with the hypothesis that German MNEs locate production stages intensive in high-skilled labor abroad. In MNEs from either country, af liate employment tends to substitute for employment at the parent rm. At the margin, substitutability is the strongest with respect to af liate employment in Western Europe. A one percent larger wage gap between Germany and locations in Central and Eastern Europe (CEE) is estimated to be associated with 900 fewer jobs in German parents and 5,000 more jobs in af liates located in CEE. A one percent larger wage gap between Sweden and CEE is estimated to be associated with 140 fewer jobs in Swedish parents and 260 more jobs in af liates located in CEE.
- Language
-
Englisch
- Bibliographic citation
-
Series: Discussion Paper Series 1 ; No. 2005,08
- Classification
-
Wirtschaft
Labor Force and Employment, Size, and Structure
Multinational Firms; International Business
Labor Demand
International Investment; Long-term Capital Movements
- Subject
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Multinational enterprises
location choice
multinomial choice
labor demand
translog cost function
Multinationales Unternehmen
Standortwahl
Arbeitsnachfrage
Arbeitskosten
Vergleich
Schweden
Deutschland
- Event
-
Geistige Schöpfung
- (who)
-
Becker, Sascha O.
Ekholm, Karolina
Jäckle, Robert
Mündler, Marc-Andreas
- Event
-
Veröffentlichung
- (who)
-
Deutsche Bundesbank
- (where)
-
Frankfurt a. M.
- (when)
-
2005
- Handle
- Last update
-
10.03.2025, 11:41 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Becker, Sascha O.
- Ekholm, Karolina
- Jäckle, Robert
- Mündler, Marc-Andreas
- Deutsche Bundesbank
Time of origin
- 2005
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