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Nacionalidade das Empresas e Fluxo de Empregos no Brasil (Firms’ Nationality and Job Flows in Brazil)


  • Pedro S. Martins

    (Queen Mary, University of London; CEG-IST, Lisbon ad IZA, Bonn)

  • Luiz A. Esteves

    (Universidade Federal do Paraná and Università di Siena)


The late 1990s in Brazil are a period characterized by a large increase in foreign direct investment inflows (and outflows). This process motivates the present study about job flows in domestic and foreign firms. Although foreign firms tend to be considered more `footloose’ than domestic firms, there is very little evidence on this difference, even for developed countries. Using data from RAIS, a large matched employer-employee panel, and other data sets and a sample of foreign and domestic firms created from a propensity score matching analysis, we compare different measures of job flows across the two types of firms. We find that, if there is any difference between the two, it is the domestic firms that exhibit greater destruction and reallocation rates and lower net job creation.

Suggested Citation

  • Pedro S. Martins & Luiz A. Esteves, 2008. "Nacionalidade das Empresas e Fluxo de Empregos no Brasil (Firms’ Nationality and Job Flows in Brazil)," Working Papers 0078, Universidade Federal do Paraná, Department of Economics.
  • Handle: RePEc:fup:wpaper:0078
    Note: Creation Date corresponds to the year in which the paper was published on the Department of Economics website. The paper may have been written a small number of months before its publication date.

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    foreign firms; job destruction; matching;

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

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