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Title:Multinational companies, backward linkages, and labour demand elasticities
Authors:Görg, Holger
Henry, Michael
Strobl, Eric
Walsh, Frank A.
Issue Date:2009
Citation:[Volume:] 42 [Issue:] 1 [Pages:] 332-348 [Journal:] The Canadian journal of economics [ISBN:] 0008-4085
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 does indeed generally reduce the wage elasticity of labour demand. This result is economically important and holds for a number of different specifications.
JEL:F23
J23
L23
Persistent Identifier of the first edition:doi:10.1111/j.1540-5982.2008.01510.x
Document Type:Article
Appears in Collections:Economists Online

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