Multinational companies, backward linkages and labour demand elasticities

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Title: Multinational companies, backward linkages and labour demand elasticities
Authors: Walsh, Frank
Görg, Holger
Henry, Michael
Strobl, Eric
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Date: Dec-2006
Online since: 2008-05-30T15:57:42Z
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 reduces the wage elasticity of labour demand. This result is economically important and holds for a number of different specifications.
Funding Details: Leverhulme Trust (Programme Grant No. F114/BF; Economic and Social Research Council (Grant No. RES-000-22-0468).
Type of material: Working Paper
Publisher: University College Dublin; School of Economics
Series/Report no.: UCD Centre for Economic Research Working Paper Series; WP06/28
Keywords: Labour demandElasticitiesLinkagesMultinational companies
Subject LCSH: Labor demand
Elasticity (Economics)
International business enterprises
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Language: en
Status of Item: Not peer reviewed
Appears in Collections:Economics Working Papers & Policy Papers

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