Curse or Blessing? Multinational Corporations and Labour Supply in Africa

Mariapia Mendola, Giovanni Prarolo and Tommaso Sonno

No 477, Development Working Papers from Centro Studi Luca d'Agliano, University of Milano

Abstract: Do multinational enterprises impact locals’ labor opportunities in developing countries? We address this largely unanswered question by combining geolocalised individual-level data with information on domestic and foreign multinationals’ affiliates spanning Sub-Saharan Africa. Having a multinational’s affiliate within walking distance correlates with an average boost in employment (+4.3%), in comparison to those without. Multinationals’ activity is correlated with higher off–farm (+13%) and lower on–farm (-7%) employment, a result par- ticularly driven by affiliates from foreign companies. Average job quality increases around affiliates, but only when part of foreign groups.

Keywords: multinational enterprises; labour supply; job participation (search for similar items in EconPapers)
JEL-codes: F16 F23 F66 J01 O12 (search for similar items in EconPapers)
Date: 2022-12-01
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:csl:devewp:477

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