Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/94807
Authors: 
Braconier, Henrik
Ekholm, Karolina
Year of Publication: 
1999
Series/Report no.: 
IUI Working Paper 523
Abstract: 
This study uses data on Swedish multinationals to estimate cross elasticities of labour demand in different locations. With a vertical decomposition of the firm's activities, whether there is substitution or complementarity between employment in different parts of the firm will depend on whether wage changes lead to a relocation of activities or simply to changes in marginal costs and/or demand for inputs in other parts of the firms. We find that there is some evidence of a substitutionary relationship between employment in the Swedish parts of the firms and employment in other high-income locations, but we do not find any evidence of substitution stemming from employment in low-income locations. We find mainly a relationshipof complementarity between employment in different affiliates.
Subjects: 
Labour demand
Multinational firms
Vertically integrated firms
JEL: 
F23
J23
Document Type: 
Working Paper

Files in This Item:
File
Size
176.76 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.