|
EconStor >
Forschungsinstitut zur Zukunft der Arbeit (IZA), Bonn >
IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA) >
Please use this identifier to cite or link to this item:
http://hdl.handle.net/10419/33709
|
| | |
| Title: | | Margins of multinational labor substitution  |
| Authors: | | Muendler, Marc-Andreas Becker, Sascha O. |
| Issue Date: | | 2006 |
| Series/Report no.: | | IZA Discussion Papers 2131 |
| Abstract: | | Multinational labor demand responds to wage differentials at the extensive margin, when a multinational enterprise (MNE) expands into foreign locations, and at the intensive margin, when an MNE operates existing affiliates across locations. We derive conditions for parametric and nonparametric identification of an MNE model to infer elasticities of labor substitution at both margins, controlling for location selectivity. Prior studies have rarely found foreign wages or operations to affect employment. Our strategy detects salient adjustments at the extensive margin for German MNEs. With every percentage increase in German wages, German MNEs allocate 2,000 manufacturing jobs to Eastern Europe at the extensive margin and 4,000 jobs overall. |
| Subjects: | | multinational enterprise location choice sample selectivity labor demand translog cost function nonparametric estimation |
| JEL: | | F21 F23 C14 C24 J23 |
| Document Type: | | Working Paper |
| Appears in Collections: | | IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)
|
| |
| | |
Download bibliographical data as:
BibTeX
|
| |
Share on:http://hdl.handle.net/10419/33709
|
Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.
|