Francesca Fabbri (University College London,) Jonathan E. Haskel (Queen Mary, University of London, and CEPR,) Matthew J. Slaughter (Tuck School of Business at Dartmouth and NBER,)
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Do multinational firms exhibit different patterns of labor demand from purely domestic firms? Many standard models of trade and multinational companies suggest one such difference may be labor-demand elasticities. For several reasons, multinationals may have more-elastic labor demands than do purely domestic firms. In this paper we discuss the theory issues involved. We then present industry-level evidence that, for U.K. and U.S. manufacturing, labor demand for less-skilled labor has become more elastic in recent decades-a period in which for both countries multinational activity has expanded. (JEL: F2, L1) Copyright (c) 2003 The European Economic Association.
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Volume (Year): 1 (2003) Issue (Month): 2-3 (04/05) Pages: 698-707 Download reference. The following formats are available: HTML
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