Multinational Companies, Backward Linkages and Labour Demand Elasticities

Holger Görg, Michael Henry, Eric Strobl () and Frank Walsh

No 2506, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: This paper investigates the link between nationality of ownership and wage elasticities of labour demand at the level of the plant. In particular, we examine whether labour demand in multinationals becomes less elastic with respect to the wage if the plant has backward linkages with the local economy. Our empirical evidence, based on a rich plant level dataset, shows that the extent of local linkages indeed generally reduces the wage elasticity of labour demand. This result is economically important and holds for a number of different specifications.

Keywords: elasticities; labour demand; multinational companies; linkages (search for similar items in EconPapers)
JEL-codes: F23 J23 L23 (search for similar items in EconPapers)
Pages: 32 pages
Date: 2006-12
New Economics Papers: this item is included in nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

Published - published in: Canadian Journal of Economics / Revue canadienne d'économique, 2009, 42( 1), 332-348

Downloads: (external link)
https://docs.iza.org/dp2506.pdf (application/pdf)

Related works:
Journal Article: Multinational companies, backward linkages, and labour demand elasticities (2009)
Journal Article: Multinational companies, backward linkages, and labour demand elasticities (2009)
Working Paper: Multinational companies, backward linkages and labour demand elasticities (2006)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:iza:izadps:dp2506

Ordering information: This working paper can be ordered from
IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany

Access Statistics for this paper

More papers in IZA Discussion Papers from Institute of Labor Economics (IZA) IZA, P.O. Box 7240, D-53072 Bonn, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Holger Hinte ().