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Multinational firms and job tasks

Author Info

  • Katariina Nilsson Hakkala
  • Fredrik Heyman
  • Fredrik Sjöholm

Abstract

We analyze the impact of multinational and foreign ownership on the demand for job tasks and educational skills. By using Swedish matched employer-employee data, we find that both foreign and domestic multinational firms have high shares of non-routine tasks and tasks requiring personal interaction. Moreover, acquisitions of local firms by multinationals increase the relative demand for non-routine and interactive job tasks in the targeted firms. The differences in the demand for job tasks are only partly explained by firm characteristics. Dividing employees by education instead of job tasks does not result in the same effects on relative labor demand, which shows that task measures do indeed capture a new labor market aspect.

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Paper provided by Government Institute for Economic Research Finland (VATT) in its series Working Papers with number 8.

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Date of creation: 22 Jul 2009
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Handle: RePEc:fer:wpaper:8
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Keywords: FDI; Cross-Border Acquisitions; Multinational Enterprises; Foreign Ownership; Job Tasks; Labor Demand; Skill Groups;

Other versions of this item:

Find related papers by JEL classification:
  • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
  • 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
  • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements

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  1. Becker, Sascha O. & Ekholm, Karolina & Muendler, Marc-Andreas, 2013. "Offshoring and the onshore composition of tasks and skills," Journal of International Economics, Elsevier, vol. 90(1), pages 91-106.
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  9. Ekholm, Karolina & Hakkala, Katariina, 2005. "The Effect of Offshoring on Labor Demand: Evidence from Sweden," Working Paper Series 654, Research Institute of Industrial Economics.
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  18. Sjöholm, Fredrik & Lipsey, Robert E. & Sun, Jing, 2010. "Foreign Ownership and Employment Growth in Indonesian Manufacturing," Working Paper Series 831, Research Institute of Industrial Economics.
  19. Edwin Leuven & Barbara Sianesi, 2003. "PSMATCH2: Stata module to perform full Mahalanobis and propensity score matching, common support graphing, and covariate imbalance testing," Statistical Software Components S432001, Boston College Department of Economics, revised 19 Jan 2015.
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Cited by:

  1. Böckerman, Petri & Kauhanen, Antti & Maliranta, Mika, 2012. "ICT and occupation-based measures of organisational change: Firm and employee outcomes," ETLA Working Papers 2, The Research Institute of the Finnish Economy.
  2. Sjöholm, Fredrik & Lipsey, Robert E. & Sun, Jing, 2010. "Foreign Ownership and Employment Growth in Indonesian Manufacturing," Working Paper Series 831, Research Institute of Industrial Economics.
  3. Sascha O. Becker & Karolina Ekholm & Marc-Andreas Muendler, 2009. "Offshoring and the Onshore Composition of Tasks and Skills," IAW Discussion Papers 55, Institut für Angewandte Wirtschaftsforschung (IAW).
  4. Ossi Korkeamäki & Tomi Kyyrä, 2010. "Institutional rules, labour demand and retirement through disability programme participation," Working Papers 16, Government Institute for Economic Research Finland (VATT).
  5. Ossi Korkeamäki, 2011. "The Finnish payroll tax cut experiment revisited," Working Papers 22, Government Institute for Economic Research Finland (VATT).
  6. Petri, Böckerman & Mika, Maliranta, 2012. "Outsourcing, occupational restructuring, and employee well-being: Is there a silver lining?," MPRA Paper 38230, University Library of Munich, Germany.
  7. Deschryvere, Matthias, 2009. "Mobility of Corporate Headquarter Functions: A Literature Review," Discussion Papers 1203, The Research Institute of the Finnish Economy.

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