Wages and International Rent Sharing in Multinational Firms

Arbeitspapier

We use a unique firm-level panel data set of multinational parents and their foreign affiliates to analyze whether profits are shared across borders within multinational firms. Using both fixed-effects and generalized method-of-moments estimators, affiliate wage levels are estimated to respond to both affiliate and parent profitability. The elasticity of affiliate wages to parent profits per worker is approximately 0.03, which can explain over 20 percent of the observed variation in affiliate wages. These results reveal a previously ignored aspect of labor-market rent sharing. They also reveal an important micro-level linkage with potential macro-level implications. International rent sharing can transmit economic conditions across national borders, and can thereby provide an implicit cross-country risk-sharing mechanism.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: IZA Discussion Papers ; No. 560

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Wages, Compensation, and Labor Costs: General ; Multinational Firms; International Business
• Thema: wages ; profit sharing ; multinational firms ; Erfolgsbeteiligung ; Lohn ; Multinationales Unternehmen ; Auslandsniederlassung ; Schätzung ; Welt

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Budd, John W. ; Konings, Jozef ; Slaughter, Matthew J.
• Ereignis: Veröffentlichung
• (wer): Institute for the Study of Labor (IZA)
• (wo): Bonn
• (wann): 2002

Weitere Informationen

• Handle: http://hdl.handle.net/10419/21368
• Letzte Aktualisierung: 10.03.2025, 11:43 MEZ