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Title:Multinational companies, backward linkages and labour demand elasticities PDF Logo
Authors:Görg, Holger
McHenry, Michael E.
Strobl, Eric
Walsh, Frank A.
Issue Date:2006
Series/Report no.:Working Paper Series, UCD Centre for Economic Research WP06/28
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.
Subjects:Labour demand
Elasticities
Linkages
Multinational companies
JEL:L23
J23
F23
Persistent Identifier of the first edition:hdl:10197/181
Document Type:Working Paper
Appears in Collections:Publikationen von Forscherinnen und Forschern des IfW
Working Paper Series, UCD School of Economics, University College Dublin (UCD)

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