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Multinational companies, backward linkages, and labour demand elasticities

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

Canadian Journal of Economics, 2009, vol. 42, issue 1, 332-348

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 does indeed generally reduce the wage elasticity of labour demand. This result is economically important and holds for a number of different specifications.

JEL-codes: F23 J23 L23 (search for similar items in EconPapers)
Date: 2009
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Journal Article: Multinational companies, backward linkages, and labour demand elasticities (2009) Downloads
Working Paper: Multinational Companies, Backward Linkages and Labour Demand Elasticities (2006) Downloads
Working Paper: Multinational companies, backward linkages and labour demand elasticities (2006) Downloads
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