Across-Country Wage Compression in Multinationals

Jonas Hjort, Xuan Li and Heather Sarsons

No 14465, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: Many employers link wages at establishments outside of the home region to the level at headquarters. We show this using new data on 1,213 multinationals' establishments across the world and linked employee-level data on their establishments in Brazil. Headquarters wage changes arising from minimum wage and exchange rate shocks are partially transmitted to workers employed in the same position abroad. Wage change transmission appears to be direct and results from firm-wide wage-setting procedures rather than associated technology or employment changes. "Anchored: wage-setting is associated with particular headquarter country characteristics.

JEL-codes: F23 J01 J3 J31 (search for similar items in EconPapers)
Date: 2020-03
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (23)

Downloads: (external link)
https://cepr.org/publications/DP14465 (application/pdf)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org

Related works:
Working Paper: Across-Country Wage Compression in Multinationals (2020)
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:cpr:ceprdp:14465

Ordering information: This working paper can be ordered from
https://cepr.org/publications/DP14465

Access Statistics for this paper

More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by ().