Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/282389 
Year of Publication: 
2023
Series/Report no.: 
CESifo Working Paper No. 10701
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
Multinational affiliates are more productive than domestic firms, so how do they affect a host country through the labor market? We use data for Norway to show that the labor market is characterized by a job ladder, with multinationals on the upper rungs. We calibrate a general equilibrium job ladder model with endogenous multinational entry to the Norwegian data. In a counterfactual where multinationals face an infinite entry cost, payments to labor fall and profits of domestic firms rise, but the impact is heterogeneous. Competition for workers increases low down on the job ladder, while it decreases high up.
Subjects: 
multinationals
labor market
job ladder
JEL: 
E24
F23
F66
J63
J64
Document Type: 
Working Paper
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