Labour Demand Adjustment: Does Foreign Ownership Matter?

Abstract

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Labour Demand Adjustment: Does Foreign Ownership Matter?

“…First, one could argue that MNFs use more flexible human resources practices such as fixed-term contracts and early retirement schemes. However, Dhyne, Fuss and Mathieu (2011) find that these have little impact on the difference in adjustment costs between MNFs and domestic firms. In this paper, we explore the role of firm scale, but this proves 18 For 200-employee firms, MNFs incur a total adjustment cost of just 53% of that of domestic firms in the case of a one-unit reduction in the white-collar workforce, and 54% in the case of an increase.…”