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Domestic jobs and foreign wages: labour demand in Swedish multinationals

J. Hatzius

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: The labour demand decisions of multinational corporations (MNCs) are likely to depend not only on domestic, but also on foreign labour costs. This paper tests this hypothesis by estimating labour demand equations for a sample of Swedish MNCs. Indeed, higher foreign costs increase an MNC''s Swedish employment and reduces its foregin employment. As MNCs become more important in many OECD countries, the role of foreign labour costs in the determination of aggregate domestic employment is likley to increase.

JEL-codes: J01 R14 (search for similar items in EconPapers)
Pages: 27 pages
Date: 1997-03
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Citations: View citations in EconPapers (4)

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