EconPapers    
Economics at your fingertips  
 

Labour demand adjustment: Does foreign ownership matter ?

Emmanuel Dhyne (), Catherine Fuss () and Claude Mathieu ()

No 207, Working Paper Research from National Bank of Belgium

Abstract: This paper examines whether multinational companies differ in their employment adjustment from domestic firms, on the basis of a panel of Belgian firms for the period 1997-2007. We focus on incumbent firms as, in general, they account for the largest fraction of net employment creation, especially among multinational firms (MNFs). We obtain structural estimates of adjustment cost parameters for blue-collar workers and white-collar workers, domestic firms, and MNFs. We find evidence of convex, asymmetric (in the sense that it is more expensive to downsize than to upsize) and cross adjustment costs (indicating costly substitution between workers). To adjust white-collar employment seems to be around half as costly for MNFs as for domestic firms. There is no difference between Belgian MNFs and foreign MNFs. A small fraction of the gap between the adjustment costs of MNFs and domestic firms may be explained by the use of fixed-term contracts and early retirement. Controlling for firm size does not yield robust conclusions; the cost advantage of MNFs may diminish, vanish or turn into a disadvantage.

New Economics Papers: this item is included in nep-lab
Date: 2010-10
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7) Track citations by RSS feed

Downloads: (external link)
https://www.nbb.be/doc/oc/repec/reswpp/wp207en.pdf (application/pdf)

Related works:
Journal Article: Labour Demand Adjustment: Does Foreign Ownership Matter? (2015) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:nbb:reswpp:201010-207

Access Statistics for this paper

More papers in Working Paper Research from National Bank of Belgium Contact information at EDIRC.
Bibliographic data for series maintained by ().

 
Page updated 2019-06-28
Handle: RePEc:nbb:reswpp:201010-207