Location Choice and Employment Decisions: A Comparison of German and Swedish Multinationals

Becker, Sascha O.; Ekholm, Karolina; Jaeckle, Robert; Muendler, Marc-Andreas

doi:10.2139/ssrn.2785094

Cited by 5 publications

(6 citation statements)

References 21 publications

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“…Mariotti et al (), Elia et al () and Castellani et al () use Italian data. The only papers to our knowledge estimating the impact of FDI on multiple home country labour markets are Becket et al (), who use German and Swedish data, and Konings and Murphy (), who cover a set of European countries. These studies, however, estimate total changes in home employment using firm level data, not skill upgrading.…”

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confidence: 99%

“… Different studies measure FDI in differently depending on data availability. Several, including Braconier and Ekholm (), Becker et al () and Konings and Murphy (), use a function of the wages in the host country (or the average across hosts). Others, such as Head and Reis (), Hansson (), Mariotti et al () and Elia et al () use information on the number of overseas workers.…”

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confidence: 99%

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Greenfield FDI and skill upgrading: A polarized issue

Davies

Desbordes

2015

Canadian J of Economics

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Outbound FDI is often accused of increasing income inequality in developed countries by shifting labour demand from low-skilled towards high-skilled workers (wage polarisation). In response, we employ data on greenfield FDI which, in contrast to M&As, may be more clearly linked to skill upgrading. Our data also delineate greenfield FDI by sector, function and destination, allowing us to control for different motives and skill intensities for seventeen developed countries for [2003][2004][2005]. We find that greenfield FDI in support services, e.g. back and front office services, induces polarised skill upgrading, benefitting high-skilled at the expense of medium-skilled workers, thereby polarising wages. JEL Classification: F16, F23

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confidence: 99%

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confidence: 99%

Greenfield FDI and skill upgrading: A polarized issue

Davies

Desbordes

2015

Canadian J of Economics

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“…They use two panels of German and Swedish multinational firms to investigate whether employment substitution between parent and foreign affiliates are due to differences in labour costs. Becker et al (2005) find that a 1 per cent increase in the wage gap between German locations and CEECs' ones translates into 900 fewer jobs in Germany and 5,000 more jobs in affiliates abroad. While the magnitude of this impact might seem large at first sight, it remains limited in comparison with the 1 954 000 workers employed by German multinationals in Germany: a 20 per cent increase in the wage gap between Germany and the CEECs would cut employment in Germany by only 1 per cent in Germany according to their estimation.…”

Section: Market Accessmentioning

confidence: 89%

“…Last, Bush et al (2005) run a firm-level analysis (controlling for the strong heterogeneity among firms), where they show that market access remains a key determinant. Becker et al (2005) is a very recent example of study investigating the role of production costs in the location decision. They use two panels of German and Swedish multinational firms to investigate whether employment substitution between parent and foreign affiliates are due to differences in labour costs.…”

Section: Market Accessmentioning

confidence: 99%

Policy Coherence for Development

2006

OECD Development Centre Working Papers

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Cette série de documents de travail a pour but de diffuser rapidement auprès des spécialistes dans les domaines concernés les résultats des travaux de recherche du Centre de développement. Ces documents ne sont disponibles que dans leur langue originale, anglais ou français ; un résumé du document est rédigé dans l'autre langue.Tout commentaire relatif à ce document peut être adressé au Centre de développement de l'OCDE,

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“…A widespread technological innovation can significantly reduce employment in industries or regions. Becker et al (2005) assert that certain kinds of technological innovations may harm employment. Since technology and labor are in a substitute relationship rather than a complementary one, technological innovation enables firms to use more capital instead of labor input.…”

Section: Jiltmentioning

confidence: 99%

Research on the relationship between environmental regulation, technological innovation and employment: focused on China

YunSeop

2022

JILT

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PurposeThe purpose of this paper is to explore the relationship between formal environmental regulation (FER) and informal environmental regulation (IER), technological innovation and employment.Design/methodology/approachThis paper uses data from the 30 provinces of China during 2003–2015. The impacts of formal and IER and technological innovation on employment are estimated by generalized least squares, and the eastern region of China is analyzed separately.FindingsFirst, both formal and IERs have different degrees of significant impact on employment, and the relationship is not a simple linear. FER has an inverted U-shaped relationship with employment, but IER has a U-shaped relationship. However, in the test including technological innovation, the results of the national sample and the eastern sample are different. In the eastern sample, the relationship between informal regulation and employment has an inverted U-shaped curve. Second, the results of model 3 and model 6 show that technological innovation has a significant negative effect on employment both in the national and the eastern region sample.Research limitations/implicationsThis paper puts forward corresponding policy implications: first, in designing environmental regulations, it is necessary to consider not only the stringency but also the type of regulation. Second, environmental regulations need to be differentiated by region. Finally, when designing environmental regulations, it is necessary to consider more flexible employment policies that are contingent on the stringency of regulations, in order to prevent employment decline due to technological innovations.Originality/valueThe conclusions about the influence of environmental regulation on employment reached are not consistent in China. Most existing research studies seldom consider environmental regulations into categories and focus only on the whole environmental regulation. This paper pays attention to the influences of different types of environmental regulations on employment. It analyzes the eastern region separately to explore whether there is a difference in the effects of environmental regulations. Furthermore, this considers the effect of technological innovation as a mediator.

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Location Choice and Employment Decisions: A Comparison of German and Swedish Multinationals

Cited by 5 publications

References 21 publications

Greenfield FDI and skill upgrading: A polarized issue

Greenfield FDI and skill upgrading: A polarized issue

Policy Coherence for Development

Research on the relationship between environmental regulation, technological innovation and employment: focused on China

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