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Curse or Blessing? Multinational Corporations and Labour Supply in Africa

Author

Listed:
  • Mariapia Mendola
  • Giovanni Prarolo
  • Tommaso Sonno

Abstract

Do multinational enterprises impact locals’ labor opportunities in developing countries? We address this largely unanswered question by combining geolocalised individual-level data with information on domestic and foreign multinationals’ affiliates spanning Sub-Saharan Africa. Having a multinational’s affiliate within walking distance correlates with an average boost in employment (+4.3%), in comparison to those without. Multinationals’ activity is correlated with higher off–farm (+13%) and lower on–farm (-7%) employment, a result par- ticularly driven by affiliates from foreign companies. Average job quality increases around affiliates, but only when part of foreign groups.

Suggested Citation

  • Mariapia Mendola & Giovanni Prarolo & Tommaso Sonno, 2022. "Curse or Blessing? Multinational Corporations and Labour Supply in Africa," Development Working Papers 477, Centro Studi Luca d'Agliano, University of Milano.
  • Handle: RePEc:csl:devewp:477
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    More about this item

    Keywords

    multinational enterprises; labour supply; job participation;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • F66 - International Economics - - Economic Impacts of Globalization - - - Labor
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General

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