Arbeitspapier

Multinational companies, backward linkages and labour demand elasticities

This paper investigates the link between nationality of ownership and wage elasticities of labour demand at the level of the plant. In particular, we examine whether labour demand in multinationals becomes less elastic with respect to the wage if the plant has backward linkages with the local economy. Our empirical evidence, based on a rich plant level dataset, shows that the extent of local linkages indeed generally reduces the wage elasticity of labour demand. This result is economically important and holds for a number of different specifications.

Language
Englisch

Bibliographic citation
Series: IZA Discussion Papers ; No. 2506

Classification
Wirtschaft

Event
Geistige Schöpfung
(who)
Görg, Holger
Henry, Michael
Strobl, Eric
Walsh, Frank A.
Event
Veröffentlichung
(who)
Institute for the Study of Labor (IZA)
(where)
Bonn
(when)
2006

Handle
Last update
10.03.2025, 11:42 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Görg, Holger
  • Henry, Michael
  • Strobl, Eric
  • Walsh, Frank A.
  • Institute for the Study of Labor (IZA)

Time of origin

  • 2006

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