North-South technology transfer in unionised multinationals

Kjell Lommerud () and Frode Meland
Authors registered in the RePEc Author Service: Odd Rune Straume

No 8664, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: We study how incentives for North-South technology transfers in multinational enterprises are affected by labour market institutions. If workers are collectively organised, incentives for technology transfers are partly governed by firms' desire to curb trade union power. This will affect not only the extent but also the type of technology transfer. While skill upgrading of southern workers benefits these workers at the expense of northern worker welfare, quality upgrading of products produced in the South may harm not only northern but also southern workers. A minimum wage policy to raise the wage levels of southern workers may spur technology transfer, possibly to the extent that the utility of northern workers decline. These conclusions are reached in a setting where a unionised multinational multiproduct firm produces two vertically differentiated products in northern and southern subsidiaries, respectively.

Keywords: Minimum wages; Multinationals; North-south technology transfer; Trade unions (search for similar items in EconPapers)
JEL-codes: F23 J51 O33 (search for similar items in EconPapers)
Date: 2011-11
New Economics Papers: this item is included in nep-bec and nep-lab
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Related works:
Journal Article: North–South technology transfer in unionised multinationals (2012)
Working Paper: North-South Technology Transfer in Unionised Multinationals (2010)
Working Paper: North-South technology transfer in unionised multinationals (2010)
Working Paper: North-South technology transfer in unionised multinationals (2010)
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