Swedish Multinationals and Competition from High‐ and Low‐Wage Locations
Abstract
This study uses data on Swedish multinationals to estimate cross-elasticities of labor demand in different locations. With a vertical decomposition of the firm’s activities, whether there is substitution or complementarity between employment in different parts of the firm will depend on whether wage changes lead to a relocation of activities or simply to changes in marginal costs and/or demand for inputs in other parts of the firms. It is found...
Paper Details
Title
Swedish Multinationals and Competition from High‐ and Low‐Wage Locations
Published Date
Aug 1, 2000
Volume
8
Issue
3
Pages
448 - 461
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