Staying Home or Moving Away? The effect of restructuring on employment in multinational headquarters and their affiliates

Filip Abraham, Tim Goesaert and Jozef Konings

Working Papers of VIVES - Research Centre for Regional Economics from KU Leuven, Faculty of Economics and Business (FEB), VIVES - Research Centre for Regional Economics

Abstract: This paper analyzes employment growth in Belgian multinational enterprises’ headquarters relative to their affiliates. We find that headquarters have on average 2.5% more employment growth than their affiliates. When they go through restructuring headquarters reduce employment by 4.4% less than their affiliates and affiliates located further away from their headquarters suffer more. This effect almost doubles for firms that operate in manufacturing.

Date: 2010
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Persistent link: https://EconPapers.repec.org/RePEc:ete:vivwps:12

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