Does more FDI make the world a riskier place for workers? We analyze whether an increase in multinational firms’ activities is associated with an increase in firm-level employment volatility. We use a firm-level dataset for Germany which allows us to distinguish between purely domestic firms, domestic multinationals, their foreign affiliates, and foreign firms that are active in Germany. We decompose the volatility of firms into their reaction and their exposure to aggregate developments. Generally, we find no above-average wage and output elasticities for multinational firms.
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Find related papers by JEL classification: 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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References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
Paul R. Bergin & Robert C. Feenstra & Gordon H. Hanson, 2007.
"Outsourcing and Volatility,"
NBER Working Papers
13144, National Bureau of Economic Research, Inc.
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Cited by: (explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)
Christian Arndt & Claudia M. Buch & Monika Schnitzer, 2007.
"FDI and Domestic Investment: An Industry-Level View,"
Discussion Papers
212, SFB/TR 15 Governance and the Efficiency of Economic Systems, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
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