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Employment dynamics in foreign and domestic plants: Evidence from Irish manufacturing

Author

Listed:
  • Holger Gorg
  • Eric Strobl

Abstract

In this paper we investigate the driving factors behind the diverse employment performances of indigenous and foreign-owned (multinational) plants in Ireland. Examining aggregate job creation and job destruction rates we find that the net gain of the foreign sector in Irish manufacturing employment was due to a considerably lower rate of job destruction and a slightly higher job creation rate. An econometric investigation into the determinants of net employment growth at the plant level lends further credence to the argument that foreign plants performed better than domestic plants. Even after controlling for a number of plant and sector specific effects, multinationals experienced greater net employment growth rates than their indigenous counterparts.

Suggested Citation

  • Holger Gorg & Eric Strobl, 2005. "Employment dynamics in foreign and domestic plants: Evidence from Irish manufacturing," International Review of Applied Economics, Taylor & Francis Journals, vol. 19(2), pages 163-178.
    • Handle: RePEc:taf:irapec:v:19:y:2005:i:2:p:163-178
    DOI: 10.1080/02692170500031349
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    Citations

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    Cited by:

    1. Kozo Kiyota & Toshiyuki Matsuura, 2006. "Why Is Multinational Status Important? Evidence from Job Creation and Job Destruction in Japan," Working Papers 555, Research Seminar in International Economics, University of Michigan.
    2. Bos, Jaap W.B. & Economidou, Claire & Sanders, Mark W.J.L., 2013. "Innovation over the industry life-cycle: Evidence from EU manufacturing," Journal of Economic Behavior & Organization, Elsevier, vol. 86(C), pages 78-91.
    3. Massimo Armenise & Giorgia Giovannetti & Gianluca Santoni, 2011. "FDI in Business Services has general TFP effects : evidence from Italy," Working Papers - Economics wp2011_12.rdf, Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa.

    More about this item

    Keywords

    Employment adjustment; job flows; multinational companies; JEL Classification: F23; L60; J63;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs

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