FDI and onshore task composition: evidence from German firms with affiliates in the Czech Republic

Konstantin Körner and Mathilde Le Moigne
Additional contact information
Konstantin Körner: Institute for Employment Research (IAB), Nuremberg, Germany
Mathilde Le Moigne: Princeton University, Princeton, USA ; University of Zurich

Journal for Labour Market Research, 2023, vol. 57, Article 25

Abstract: "How does a firm’s foreign direct investment (FDI) in a low-wage country change its onshore task demand in a high-wage country? Is the shift more intensive for jobs that the literature has designated offshorable? We address these questions using a matched difference-in-differences (DiD) approach with data on German firms that have similar propensities to conduct FDI in the Czech Republic. Our novel matching procedure draws on post-lasso logit estimates and shows that high task intensities of managing, administration, and labor legislation play a major role in firms’ engagement in international expansion. The outcomes of the DiD estimation show that after acquiring a foreign affiliate, multinational enterprises (MNEs) increase the intensities of their activities typical of headquarters such as managing, analyzing, and negotiating relative to the corresponding task intensities among non-MNEs. We also find sector-specific decreases, such as a reduction in typical production tasks (monitoring, producing, measuring) in manufacturing MNEs or typical service tasks (informing, medical, repairing) in service MNEs." (Author's abstract, IAB-Doku) ((en))

Keywords: Bundesrepublik Deutschland; Tschechische Republik; IAB-Open-Access-Publikation; Ausland; Auslandsinvestitionen; IAB-Befragung Research on Locational and Organizational Change; Auswirkungen; BIBB-Erhebung; Beschäftigungseffekte; Dienstleistungsbereich; Inländer; multinationale Unternehmen; Niedriglohnland; outsourcing; qualifikationsspezifische Faktoren; Arbeitskräftenachfrage; Tätigkeitsfelder; verarbeitendes Gewerbe; 1985-2011 (search for similar items in EconPapers)
JEL-codes: F16 F66 J24 (search for similar items in EconPapers)
Date: 2023-08-14
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1186/s12651-023-00346-7

Related works:
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:iab:iabjlr:v:57:p:art.25

Ordering information: This journal article can be ordered from
https://www.springer.com/economics/journal/12651

DOI: 10.1186/s12651-023-00346-7

Access Statistics for this article

Journal for Labour Market Research is currently edited by Joachim Möller et al.

More articles in Journal for Labour Market Research from Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany] Contact information at EDIRC.
Bibliographic data for series maintained by IAB, Geschäftsbereich Wissenschaftliche Fachinformation und Bibliothek ().