TY  - RPRT
        AU  - Godart, Olivier
AU  - Görg, Holger
AU  - Greenaway, David
        TI  - Domestic Multinationals, Foreign Affiliates, and Labour Demand Elasticities
        PY  - 2012/Dec/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 7061
        UR  - https://www.iza.org/index.php/publications/dp7061
        AB  - Using information on a panel of multinational firms operating in the United Kingdom from 1996 to 2005, we find that labour demand in domestic multinationals is less sensitive to labour cost changes than in foreign multinationals. This difference in the wage elasticity of labour demand persists even when we control for the skill intensity of firms or their level of intangible assets. This is in line with an interpretation that the provision of headquarter services in domestic multinational firms protects against strong fluctuations in labour demand. Overall, our results suggest that the wage elasticity of labour demand is about 40 percent lower in domestic than in foreign multinationals.
        KW  - skill intensity
KW  - labour demand elasticity
KW  - multinational firms
KW  - headquarter services
        ER  -