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Domestic Jobs and Foreign Wages

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  • Hatzius, Jan

Abstract

It is plausible that the labour demand decisions of multinational corporations (MNCs) depend not only on domestic, but also on foreign labour costs. This hypothesis is tested by estimating labour demand equations for a sample of Swedish MNCs. Indeed, higher foreign costs increase an MNC's Swedish employment and reduce its foreign employment. As MNCs become more important in many OECD countries, the responsiveness of domestic output and employment to foreign labour costs is likely to increase. Copyright 1998 by The editors of the Scandinavian Journal of Economics.

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  • Hatzius, Jan, 1998. " Domestic Jobs and Foreign Wages," Scandinavian Journal of Economics, Wiley Blackwell, vol. 100(4), pages 733-746, December.
  • Handle: RePEc:bla:scandj:v:100:y:1998:i:4:p:733-46
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    Citations

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    Cited by:

    1. Jozef Konings & Alan Murphy, 2001. "Do Multinational Enterprises Substitute Parent Jobs for Foreign Ones? Evidence from Firm Level Panel Data," LICOS Discussion Papers 10001, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
    2. Ludo Cuyvers & Emmanuel Dhyne & Reth Soeng, 2010. "The effects of internationalisation on domestic labour demand by skills : Firm-level evidence for Belgium," Working Paper Research 206, National Bank of Belgium.
    3. Ludo Cuyvers & Michel Dumont & Glenn Rayp & Katrien Stevens, 2005. "Home Employment Effects of EU Firms’ Activities in Central and Eastern European Countries," Open Economies Review, Springer, vol. 16(2), pages 153-174, April.
    4. Lichter, Andreas & Peichl, Andreas & Siegloch, Sebastian, 2015. "The own-wage elasticity of labor demand: A meta-regression analysis," European Economic Review, Elsevier, vol. 80(C), pages 94-119.
    5. Hansson, Pär, 2001. "Skill Upgrading and Production Transfer within Swedish Multinationals in the 1990s," Working Paper Series 166, Trade Union Institute for Economic Research.
    6. Silvia Rocha‐Akis & Ronnie Schöb, 2011. "Welfare Policy in the Presence of Unionised Labour and Internationally Mobile Firms," Scandinavian Journal of Economics, Wiley Blackwell, vol. 113(1), pages 93-119, March.
    7. Giorgio Barba Navaretti & Daniele Checchi & Alessandro Turrini, 2003. "Adjusting Labor Demand: Multinational Versus National Firms: A Cross-European Analysis," Journal of the European Economic Association, MIT Press, vol. 1(2-3), pages 708-719, 04/05.
    8. Ekaterina Sprenger, 2009. "A survey on European integration, offshoring and trade," Memoranda - Policy Papers 43, Institut für Ost- und Südosteuropaforschung (Institute for East and Southeast European Studies).
    9. Konings, Jozef & Murphy, Alan, 2001. "Do Multinational Enterprises Substitute Parent Jobs for Foreign Ones? Evidence from European Firm Level Panel Data," CEPR Discussion Papers 2972, C.E.P.R. Discussion Papers.

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