Advanced Search
MyIDEAS: Login to save this paper or follow this series

Adjusting Labour Demand: Multinationals vs. National Firms: A Cross-European Analysis

Contents:

Author Info

  • Giorgio Barba Navaretti

    (University of Milan; Centro Studi Luca d’Agliano)

  • Daniele Checchi

    (wTw, University of Milan)

  • Alessandro Turrini

    (University of Bergamo; UNCTAD; CEPR, Centro Studi Luca d´Agliano)

Abstract

This paper provides a cross-country perspective to the firm-level analysis of the relation between foreign ownership and labour demand. We estimate labour demand equations in eleven European countries using dynamic panel data techniques on samples that permit to distinguish the ownership status of firms. We find that the employment adjustment is significantly faster in MNEs’ affiliates, irrespective of the country investigated. As for the wage elasticity of labour demand, MNEs show smaller elasticities compared with national firms, and very little variation across countries. Crosscountry correlations show that the relative value of wage elasticities in MNEs on that in NEs is positively related to country-level indexes of labour market regulation (employment protection, union presence,...). We interpret the results as follows. MNEs tend to have a more rigid demand for total labour (possibly due to a different skill composition). However, being MNEs relatively “footloose”, this difference tends to vanish as the rigidity of employment regulations rises.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.dagliano.unimi.it/media/WP2002_168.pdf
Download Restriction: no

Bibliographic Info

Paper provided by Centro Studi Luca d\'Agliano, University of Milano in its series Development Working Papers with number 168.

as in new window
Length:
Date of creation: 01 Nov 2002
Date of revision:
Handle: RePEc:csl:devewp:168

Contact details of provider:
Postal: Via Conservatorio 7 - 20122 Milano
Phone: +39 02 503 16486
Fax: +39 02 503 16475
Web page: http://www.dagliano.unimi.it/
More information through EDIRC

Related research

Keywords: Multinational firms; labour demand elasticity; employment adjustment costs;

Find related papers by JEL classification:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Hijzen, Alexander & Martins, Pedro S. & Schank, Thorsten & Upward, Richard, 2013. "Foreign-owned firms around the world: A comparative analysis of wages and employment at the micro-level," European Economic Review, Elsevier, Elsevier, vol. 60(C), pages 170-188.
  2. Hijzen, Alexander & Swaim, Paul, 2010. "Offshoring, labour market institutions and the elasticity of labour demand," European Economic Review, Elsevier, Elsevier, vol. 54(8), pages 1016-1034, November.
  3. Bohachova, Olga & Boockmann, Bernhard & Buch, Claudia M., 2011. "Labor Demand During the Crisis: What Happened in Germany?," IZA Discussion Papers 6074, Institute for the Study of Labor (IZA).
  4. Giorgio Barba Navaretti & Anthony J. Venables, 2013. "Multinationals and industrial policy," Oxford Review of Economic Policy, Oxford University Press, Oxford University Press, vol. 29(2), pages 361-382, SUMMER.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:csl:devewp:168. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Chiara Elli).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.