Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/4055 
Year of Publication: 
2006
Series/Report no.: 
IZA Discussion Papers No. 2506
Publisher: 
Institute for the Study of Labor (IZA), Bonn
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 generally reduces the wage elasticity of labour demand. This result is economically important and holds for a number of different specifications.
Document Type: 
Working Paper

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