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Domestic jobs and foreign wages: labour demand in Swedish multinationals

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  • Hatzius, J.

Abstract

The labour demand decisions of multinational corporations (MNCs) are likely to depend not only on domestic, but also on foreign labour costs. This paper tests this hypothesis by estimating labour demand equations for a sample of Swedish MNCs. Indeed, higher foreign costs increase an MNC''s Swedish employment and reduces its foregin employment. As MNCs become more important in many OECD countries, the role of foreign labour costs in the determination of aggregate domestic employment is likley to increase.

Suggested Citation

  • Hatzius, J., 1997. "Domestic jobs and foreign wages: labour demand in Swedish multinationals," LSE Research Online Documents on Economics 20350, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:20350
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    File URL: http://eprints.lse.ac.uk/20350/
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    References listed on IDEAS

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    1. Braunerhjelm, Pontus & Ekholm, Karolina & Grundberg, Lennart & Karpaty, Patrik, 1996. "Swedish Multinational Corporations: Recent Trends in Foreign Activities," Working Paper Series 462, Research Institute of Industrial Economics.
    2. Grossman, Gene M., 1986. "Imports as a cause of injury: The case of the U.S. steel industry," Journal of International Economics, Elsevier, vol. 20(3-4), pages 201-223, May.
    3. Robert E. Lipsey & Irving Kravis, 1982. "Do Multinational Firms Adapt Factor Proportions to Relative Factor Prices?," NBER Chapters, in: Trade and Employment in Developing Countries, Volume 2: Factor Supply and Substitution, pages 215-256, National Bureau of Economic Research, Inc.
    4. Ana L. Revenga, 1992. "Exporting Jobs?The Impact of Import Competition on Employment and Wages in U. S. Manufacturing," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 107(1), pages 255-284.
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    Cited by:

    1. Jungnickel, Rolf & Keller, Dietmar, 2003. "German FDI and Integration of Production in the EU," Discussion Paper Series 26376, Hamburg Institute of International Economics.
    2. repec:wsr:wpaper:y:2012:i:077 is not listed on IDEAS
    3. Blanas, Sotiris, 2012. "Intra-firm trade and employment in US manufacturing," Kiel Advanced Studies Working Papers 458, Kiel Institute for the World Economy (IfW Kiel).
    4. Tain-Jy Chen & Ying-Hua Ku, 2003. "The Effects of Overseas Investment on Domestic Employment," NBER Working Papers 10156, National Bureau of Economic Research, Inc.

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    More about this item

    JEL classification:

    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns
    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General

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