Multinational Firms and Job Tasks
39 Pages Posted: 9 Oct 2010
Date Written: June 1, 2008
Abstract
We analyze the impact of multinational and foreign ownership on the demand for job tasks and educational skills. By using Swedish matched employer-employee data, we find that both foreign and domestic multinational firms have high shares of non-routine tasks and tasks requiring personal interaction. Moreover, acquisitions of local firms by multinationals increase the relative demand for non-routine and interactive job tasks in the targeted firms. The differences in the demand for job tasks are only partly explained by firm characteristics. Dividing employees by education instead of job tasks does not result in the same effects on relative labor demand, which shows that task measures do indeed capture a new labor market aspect.
Keywords: FDI, Cross-Border Acquisitions, Multinational Enterprises, Foreign Ownership, Job Tasks, Labor Demand, Skill Groups
JEL Classification: J23, F16, F21, F23
Suggested Citation: Suggested Citation
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