Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/24848
Authors: 
Larch, Mario
Lechthaler, Wolfgang
Year of Publication: 
2008
Series/Report no.: 
Kiel working paper 1454
Abstract: 
In the presence of increasing specialization of workers it becomes more and more difficult for firms to find the most suitable workers. In such an environment a multinational corporation has an advantage because it can exchange workers between plants in different countries. In this way it can draw on a larger labor market pool, reducing the mismatch of its workforce. This paper analyzes the consequences of this advantage for production, employment and, most prominently, wages. We are able to disentangle the effects of worker heterogeneity and firm heterogeneity on wages and show that the latter is important to explain why multinationals typically pay higher wages.
Subjects: 
Heterogeneous labor
multinational firms
intra-wage distribution
heterogeneous firms
JEL: 
F23
F12
J41
Document Type: 
Working Paper

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