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Staying Home or Moving Away? The effect of restructuring on employment in multinational headquarters and their affiliates

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  • Filip Abraham
  • Tim Goesaert
  • Jozef Konings
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    Abstract

    This paper analyzes employment growth in Belgian multinational enterprises’ headquarters relative to their affiliates. We find that headquarters have on average 2.5% more employment growth than their affiliates. When they go through restructuring headquarters reduce employment by 4.4% less than their affiliates and affiliates located further away from their headquarters suffer more. This effect almost doubles for firms that operate in manufacturing.

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    File URL: http://www.econ.kuleuven.be/VIVES/publicaties/discussionpapers/DP/DP2010/anchorage-march2010.pdf
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    Bibliographic Info

    Paper provided by Katholieke Universiteit Leuven, Faculteit Economie en Bedrijfswetenschappen, Vives in its series Vives discussion paper series with number 12.

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    Date of creation: 2010
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    Handle: RePEc:ete:vivwps:12

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