Why Is Multinational Status Important? Evidence from Job Creation and Job Destruction in Japan

Kozo Kiyota and Toshiyuki Matsuura ()

No 555, Working Papers from Research Seminar in International Economics, University of Michigan

Abstract: Previous studies of job creation and job destruction (JCJD) have found that the gross job reallocation rate greatly exceeded the net job creation rate even in a narrowly defined industry or the same international trade orientation. This paper asks whether multinational enterprises (MNEs) reflect different patterns of JCJD compared to domestic firms. We distinguish two types of MNEs (i.e., Japanese MNEs and foreign-owned firms) and utilize firm-level data in Japan for 1995-2002. We find that the gross job reallocation rate may be equal to the net job creation rate once we control for the entry/exit, industry, worker type, and multinational status. Multinational status is important in explaining the heterogeneity of employment patterns among firms.

Keywords: Multinational Firms; Job Creation and Job Destruction; Japan (search for similar items in EconPapers)
JEL-codes: F23 J23 (search for similar items in EconPapers)
Date: 2006
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Persistent link: http://EconPapers.repec.org/RePEc:mie:wpaper:555

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