Does Nationality Of Ownership Matter For Labor Demands?

Francesca Fabbri, Jonathan E. Haskel () and Matthew J. Slaughter
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Matthew J. Slaughter: Tuck School of Business at Dartmouth and NBER,

Journal of the European Economic Association, 2003, vol. 1, issue 2-3, pages 698-707

Abstract: Do multinational firms exhibit different patterns of labor demand from purely domestic firms? Many standard models of trade and multinational companies suggest one such difference may be labor-demand elasticities. For several reasons, multinationals may have more-elastic labor demands than do purely domestic firms. In this paper we discuss the theory issues involved. We then present industry-level evidence that, for U.K. and U.S. manufacturing, labor demand for less-skilled labor has become more elastic in recent decades-a period in which for both countries multinational activity has expanded. (JEL: F2, L1) Copyright (c) 2003 The European Economic Association.

Date: 2003
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