Margins of multinational labor substitution / Marc-Andreas Muendler, Sascha O. Becker.
Material type:
TextSeries: Working paper series (National Bureau of Economic Research) ; no. 14776.Publication details: Cambridge, Mass. : National Bureau of Economic Research, 2009Description: 58 p. : ill. ; 22 cmSubject(s): International business enterprises -- Germany | International business enterprises -- Europe, Eastern | Labor market -- Europe, EasternLOC classification: HB1 | .N38 no. 14776Online resources: Click here to access online Summary: Employment at multinational enterprises (MNEs) responds to wages at the extensive margin, when an MNE enters a foreign location, and at the intensive margin, when an MNE operates existing affiliates. We present an MNE model and conditions for parametric and nonparametric identification. Prior studies rarely found wages to affect MNE employment. We document a complementarity bias when the extensive margin is excluded and detect salient labor substitution at both margins for German manufacturing MNEs. With a one-percent increase in home wages, for instance, MNEs add 2,000 jobs in Eastern Europe at the extensive margin and 4,000 jobs overall; a converse one-percent drop in Eastern European wages removes 730 German MNE jobs.
| Item type | Current library | Collection | Call number | Copy number | Status | Date due | Barcode |
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Book
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University of Macedonia Library Βιβλιοστάσιο Β (Stack Room B) | Research Papers | HB1.N38 no. 14776 (Browse shelf (Opens below)) | 1 | Available | 0013125778 |
Includes bibliographical references.
Employment at multinational enterprises (MNEs) responds to wages at the extensive margin, when an MNE enters a foreign location, and at the intensive margin, when an MNE operates existing affiliates. We present an MNE model and conditions for parametric and nonparametric identification. Prior studies rarely found wages to affect MNE employment. We document a complementarity bias when the extensive margin is excluded and detect salient labor substitution at both margins for German manufacturing MNEs. With a one-percent increase in home wages, for instance, MNEs add 2,000 jobs in Eastern Europe at the extensive margin and 4,000 jobs overall; a converse one-percent drop in Eastern European wages removes 730 German MNE jobs.
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