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Multinational Firms and Job Tasks

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Author Info

  • Nilsson Hakkala, Katariina

    (Helsinki School of Economics)

  • Heyman, Fredrik

    ()
    (Research Institute of Industrial Economics (IFN))

  • Sjöholm, Fredrik

    ()
    (Research Institute of Industrial Economics (IFN))

Abstract

We use Swedish matched employer-employee data to analyze the impact of multinational activity and foreign acquisitions on the relative demand for different job tasks. We contribute to the literature by using a conceptualization from the recent literature in international economics and define the division of labor in terms of job tasks. Our econometric results show that multinational firms, both foreign and domestic, are associated with higher shares of non-routine tasks and tasks requiring personal interaction than local firms. Moreover, acquisitions of local firms by both foreign and domestic MNEs tend to increase the relative demand for non-routine and interactive job tasks, i.e. tasks that are not easily offshored. As a comparison, dividing labor according to educational attainment does not capture the found effects on relative labor demand.

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Bibliographic Info

Paper provided by Research Institute of Industrial Economics in its series Working Paper Series with number 781.

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Length: 41 pages
Date of creation: 22 Dec 2008
Date of revision:
Handle: RePEc:hhs:iuiwop:0781

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Postal: Research Institute of Industrial Economics, Box 55665, SE-102 15 Stockholm, Sweden
Phone: +46 8 665 4500
Fax: +46 8 665 4599
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Web page: http://www.ifn.se/
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Keywords: FDI; Cross-Border Acquisitions; Multinational Enterprises; Foreign Ownership; Job Tasks; Labor Demand; Skill Groups;

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References

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  1. Andersson, Linda & Karpaty, Patrik, 2007. "Offshoring and Relative Labor Demand in Swedish Firms," Working Papers 2007:5, Örebro University, School of Business.
  2. Bandick, Roger & Karpaty, Patrick, 2007. "Foregin Acquisition and Employment Effects in Swedish Manufacturing," Working Papers 2007:10, Örebro University, School of Business.
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  7. Martins, Pedro S., 2004. "Do Foreign Firms Really Pay Higher Wages? Evidence from Different Estimators," IZA Discussion Papers 1388, Institute for the Study of Labor (IZA).
  8. Sascha O. Becker & Karolina Ekholm & Marc-Andreas Muendler, 2009. "Offshoring and the Onshore Composition of Tasks and Skills," IAW Discussion Papers 55, Institut für Angewandte Wirtschaftsforschung (IAW).
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Citations

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Cited by:
  1. Böckerman, Petri & Maliranta, Mika, 2012. "Outsourcing, occupational restructuring, and employee well-being: Is there a silver lining?," Discussion Papers 1271, The Research Institute of the Finnish Economy.
  2. Ossi Korkeamäki, 2011. "The Finnish payroll tax cut experiment revisited," Working Papers 22, Government Institute for Economic Research Finland (VATT).
  3. Becker, Sascha & Ekholm, Karolina & Muendler, Marc-Andreas, 2009. "Offshoring and the Onshore Composition of Tasks and Skills," Stirling Economics Discussion Papers 2009-18, University of Stirling, Division of Economics.
  4. Deschryvere, Matthias, 2009. "Mobility of Corporate Headquarter Functions: A Literature Review," Discussion Papers 1203, The Research Institute of the Finnish Economy.
  5. repec:cge:warwcg:96 is not listed on IDEAS
  6. Böckerman, Petri & Kauhanen, Antti & Maliranta, Mika, 2012. "ICT and occupation-based measures of organisational change: Firm and employee outcomes," ETLA Working Papers 2, The Research Institute of the Finnish Economy.
  7. Ossi Korkeamäki & Tomi Kyyrä, 2012. "Institutional rules, labour demand and retirement through disability programme participation," Journal of Population Economics, Springer, vol. 25(2), pages 439-468, January.

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