Cross-Border Acquisitions, Multinationals and Wage Elasticities

Katariina Nilsson Hakkala, Fredrik Heyman and Fredrik Sjöholm

No 709, Working Paper Series from Research Institute of Industrial Economics

Abstract: The growing number of cross-border acquisitions has in many countries raised concerns about labor demand consequences. In this study, we use detailed firm level data to examine how increased internationalization and multinational activity affect the volatility of employment, or rather, the wage elasticity of labor demand. We analyze whether the wage elasticity of labor demand differs between multinational and non-multinational firms as well as between foreign-owned and domestic firms, and we are able to distinguish between different skill groups of employees. Moreover, we separate between an acquisition effect and a general ownership effect. Our results do not show any general difference in wage elasticities between different types of firms.

Keywords: FDI; Cross-Border Acquisitions; Multinational Enterprises; Foreign Ownership; Labor Demand; Skill Groups; GMM (search for similar items in EconPapers)
JEL-codes: F16 F21 F23 J23 (search for similar items in EconPapers)
Pages: 36 pages
Date: 2007-06-29
New Economics Papers: this item is included in nep-lab
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Citations: View citations in EconPapers (5)

Published as Hakkala, Katariina, Fredrik Heyman and Fredrik Sjöholm, 'Cross-Border Acquisitions, Multinationals and Wage Elasticities' in Review of World Economics, 2010, pages 263-280.

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Persistent link: https://EconPapers.repec.org/RePEc:hhs:iuiwop:0709

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