Premium
Firmes plurinationales, effets d'entraînement en amont, et élasticités de la demande de travail .
Author(s) -
Görg Holger,
Henry Michael,
Strobl Eric,
Walsh Frank
Publication year - 2009
Publication title -
canadian journal of economics/revue canadienne d'économique
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.773
H-Index - 69
eISSN - 1540-5982
pISSN - 0008-4085
DOI - 10.1111/j.1540-5982.2008.01510.x
Subject(s) - economics , multinational corporation , wage , nationality , labour economics , elasticity (physics) , labor demand , price elasticity of demand , microeconomics , immigration , materials science , archaeology , finance , composite material , history
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 does indeed generally reduce the wage elasticity of labour demand. This result is economically important and holds for a number of different specifications.