Resource title

Multinational firms and heterogeneous labor

Resource image

image for OpenScout resource :: Multinational firms and heterogeneous labor

Resource description

In the presence of increasing specialization of workers it becomes more and more difficult for firms to find the most suitable workers. In such an environment a multinational corporation has an advantage because it can exchange workers between plants in different countries. In this way it can draw on a larger labor market pool, reducing the mismatch of its workforce. This paper analyzes the consequences of this advantage for production, employment and, most prominently, wages. We are able to disentangle the effects of worker heterogeneity and firm heterogeneity on wages and show that the latter is important to explain why multinationals typically pay higher wages.

Resource author

Mario Larch, Wolfgang Lechthaler

Resource publisher

Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/24848

Resource license

Adapt according to the presented license agreement and reference the original author.