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Cross-Border Acquisitions, Multinationals and Wage Elasticities

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Author Info
Hakkala, Katariina (Research Institute of Industrial Economics (IFN))
Heyman, Fredrik () (Research Institute of Industrial Economics (IFN))
Sjöholm, Fredrik () (Research Institute of Industrial Economics (IFN))

Additional information is available for the following registered author(s):

Abstract

The growing number of cross-border acquisitions has in many countries raised concerns about labor demand consequences. In this study, we use detailed firm level data to examine how increased internationalization and multinational activity affect the volatility of employment, or rather, the wage elasticity of labor demand. We analyze whether the wage elasticity of labor demand differs between multinational and non-multinational firms as well as between foreign-owned and domestic firms, and we are able to distinguish between different skill groups of employees. Moreover, we separate between an acquisition effect and a general ownership effect. Our results do not show any general difference in wage elasticities between different types of firms.

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Publisher Info
Paper provided by Research Institute of Industrial Economics in its series Working Paper Series with number 709.

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Length: 36 pages
Date of creation: 29 Jun 2007
Date of revision:
Handle: RePEc:hhs:iuiwop:0709

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Postal: Research Institute of Industrial Economics, Box 55665, SE-102 15 Stockholm, Sweden
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Related research
Keywords: FDI; Cross-Border Acquisitions; Multinational Enterprises; Foreign Ownership; Labor Demand; Skill Groups; GMM;

Other versions of this item:

Find related papers by JEL classification:
F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand

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