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Staying Home or Moving Away? The effect of restructuring on employment in multinational headquarters and their affiliates

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  • Filip Abraham
  • Tim Goesaert
  • Jozef Konings

Abstract

This paper analyzes employment growth in Belgian multinational enterprises’ headquarters relative to their affiliates. We find that headquarters have on average 2.5% more employment growth than their affiliates. When they go through restructuring headquarters reduce employment by 4.4% less than their affiliates and affiliates located further away from their headquarters suffer more. This effect almost doubles for firms that operate in manufacturing.

Suggested Citation

  • Filip Abraham & Tim Goesaert & Jozef Konings, 2010. "Staying Home or Moving Away? The effect of restructuring on employment in multinational headquarters and their affiliates," Working Papers of VIVES - Research Centre for Regional Economics 12, KU Leuven, Faculty of Economics and Business (FEB), VIVES - Research Centre for Regional Economics.
  • Handle: RePEc:ete:vivwps:12
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