Nationaløkonomisk tidsskrift,
Nationaløkonomisk Forening

Abstract: We present a theoretical framework that explains how the wage in one production location in a multinational firm affects labour demand in other production locations through two effects: the relocation effect and the output effect. Second, we use data on Danish multinationals in order to estimate labour demand in the Danish part of these firms. The results indicate a (weak) substitutionary relationships between workers in Denmark and other high-income countries. However, labour demand in the Danish part of the firms seems to be independent of the wage costs in low-income countries.

Keywords: multinational firms; production location; labour demand

JEL-codes: A10

Language: English

Full text files

2003.pdf  Full text

Download statistics

• Nationaløkonomisk Forening
• Home page for this series

Questions (including download problems) about the papers in this series should be directed to Lasse Wolsgård ()
Report other problems with accessing this service to Sune Karlsson ().

This page generated on 2024-03-20 23:25:50.