Curse or Blessing? Multinational Corporations and Labor Supply in Africa

Mariapia Mendola, Giovanni Prarolo () and Tommaso Sonno

No 16964, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: Do multinational enterprises create local job opportunities in developing countries? We address this largely unanswered question by combining geolocalised individual-level data with information on domestic and foreign multinationals' affiliates in Sub-Saharan Africa over more than a decade. Having a multinational's affiliate within walking distance correlates with an increase in employment of +4.3% with respect to the sample mean. Multinationals' activity is correlated with higher off-farm and lower on-farm employment (+13% and -7%, respectively), a result driven by affiliates of foreign companies. Female employment and "good jobs" increase around affiliates, but only when they are part of foreign groups.

Keywords: Multinational enterprises; Labor supply; Job quality; Africa (search for similar items in EconPapers)
JEL-codes: F16 F23 F66 J01 O12 (search for similar items in EconPapers)
Date: 2022-01
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