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Multinational Companies, Backward Linkages and Labour Demand Elasticities

Holger Görg (), Michael Henry (), Eric Strobl () and Frank Walsh ()

No 2506, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: This paper investigates the link between nationality of ownership and wage elasticities of labour demand at the level of the plant. In particular, we examine whether labour demand in multinationals becomes less elastic with respect to the wage if the plant has backward linkages with the local economy. Our empirical evidence, based on a rich plant level dataset, shows that the extent of local linkages indeed generally reduces the wage elasticity of labour demand. This result is economically important and holds for a number of different specifications.

Keywords: elasticities; labour demand; multinational companies; linkages (search for similar items in EconPapers)
JEL-codes: F23 J23 L23 (search for similar items in EconPapers)
Pages: 32 pages
Date: 2006-12
New Economics Papers: this item is included in nep-lab
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Published in: Canadian Journal of Economics / Revue canadienne d'économique, 2009, 42( 1), 332-348

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Related works:
Journal Article: Multinational companies, backward linkages, and labour demand elasticities (2009) Downloads
Journal Article: Multinational companies, backward linkages, and labour demand elasticities (2009) Downloads
Working Paper: Multinational companies, backward linkages and labour demand elasticities (2006) Downloads
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