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Does Nationality Of Ownership Matter For Labor Demands?

Author

Listed:
  • Francesca Fabbri

    (University College London,)

  • Jonathan E. Haskel

    (Queen Mary, University of London, and CEPR,)

  • Matthew J. Slaughter

    (Tuck School of Business at Dartmouth and NBER,)

Abstract

Do multinational firms exhibit different patterns of labor demand from purely domestic firms? Many standard models of trade and multinational companies suggest one such difference may be labor-demand elasticities. For several reasons, multinationals may have more-elastic labor demands than do purely domestic firms. In this paper we discuss the theory issues involved. We then present industry-level evidence that, for U.K. and U.S. manufacturing, labor demand for less-skilled labor has become more elastic in recent decades-a period in which for both countries multinational activity has expanded. (JEL: F2, L1) Copyright (c) 2003 The European Economic Association.

Suggested Citation

  • Francesca Fabbri & Jonathan E. Haskel & Matthew J. Slaughter, 2003. "Does Nationality Of Ownership Matter For Labor Demands?," Journal of the European Economic Association, MIT Press, vol. 1(2-3), pages 698-707, 04/05.
  • Handle: RePEc:tpr:jeurec:v:1:y:2003:i:2-3:p:698-707
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    JEL classification:

    • F2 - International Economics - - International Factor Movements and International Business
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance

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