Author: John W. Budd, Jozef Konings and Matthew J. SlaughterPublisher:
ISBN:
Category :
Languages : en
Pages : 37
Book Description
Wages and International Rent Sharing in Multinational Firms
Author: John W. Budd, Jozef Konings and Matthew J. SlaughterPublisher:
ISBN:
Category :
Languages : en
Pages : 37
Book Description
International Rent Sharing in Multinational Firms
Author: John W. BuddPublisher:
ISBN:
Category : Affiliated corporations
Languages : en
Pages : 48
Book Description
We use a unique firm-level panel data set of multinational parents and their foreign affiliates to analyze whether profits are shared across borders within multinational firms. Using both fixed-effects and generalized method-of-moments estimators, affiliate wage levels are estimated to respond to both affiliate and parent profitability. The elasticity of affiliate wages to parent profits per worker is approximately 0.03, which can explain over 20 percent of the observed variation in affiliate wages. These results reveal a previously ignored aspect of labor-market rent sharing. They also reveal an important micro-level linkage with potential macro-level implications. International rent sharing can transmit economic conditions across national borders, and can thereby provide an implicit cross-country risk-sharing mechanism.
Wages and International Rent Sharing in Multinational Firms
Author: John W. BuddAre Profits Shared Across Borders? Evidence on International Rent Sharing
Author: Publisher:
ISBN:
Category :
Languages : en
Pages :
Book Description
The National Bureau of Economic Research, Inc. presents an abstract for the article entitled "Are Profits Shared Across Borders? Evidence on International Rent Sharing," by John W. Budd and Matthew J. Slaughter. The article discusses how profit sharing may be conditioned by the international linkages that help shape economic openness. An analysis was done on the negotiated contract wages for Canadian labor contracts spanning all manufacturing from 1980 through 1992. Users may purchase the full text of the article online.
Wages and International Tax Competition
Author: Sebastian KrautheimPublisher:
ISBN:
Category : International business enterprises
Languages : en
Pages : 39
Book Description
Rent-sharing, Holdup, and Wages
Author: David Edward CardPublisher:
ISBN:
Category : Profit-sharing
Languages : en
Pages : 38
Book Description
When wage contracts are relatively short-lived, rent sharing may reduce the incentives for investment since some of the returns to sunk capital are captured by workers. In this paper we use a matched worker-firm data set from the Veneto region of Italy that combines Social Security earnings records for employees with detailed financial information for employers to measure the degree of rent sharing and test for holdup. We estimate wage models with job match effects, allowing us to control for any permanent differences in productivity across workers, firms, and job matches. We also compare OLS and instrumental variables specifications that use sales of firms in other regions of the country to instrument value-added per worker. We find strong evidence of rent-sharing, with a "Lester range" of variation in wages between profitable and unprofitable firms of around 10%. On the other hand we find little evidence that bargaining lowers the return to investment. Instead, firm-level bargaining in Veneto appears to split the rents after deducting the full cost of capital. Our findings are consistent with a dynamic bargaining model (Crawford, 1988) in which workers pay up front for the returns to sunk capital they will capture in later periods.
Multinational Enterprise and Economic Analysis
Author: Richard E. CavesPublisher: Cambridge University Press
ISBN: 1139465996
Category : Business & Economics
Languages : en
Pages : 65
Book Description
The third edition of Multinational Enterprise and Economic Analysis surveys the contributions that economic analysis has made to our understanding of why multinational enterprises exist and what consequences they have for the workings of the national and international economies. It shows how economic analysis can explain multinationals' activity patterns and how economics can shed conceptual light on problems of business policies and managerial decisions arising in practice. It addresses the welfare problems arising from multinationals' activities and the logic of governments' preferences and choices in their dealings with multinationals. Suitable for researchers, graduates and upper-level undergraduates. The third edition of this highly accessible book incorporates the many additions to our knowledge of multinationals accumulated in research appearing in the past decade.
Globalized Labour Markets? International Rent Sharing Across 47 Countries
Author: Pedro S. MartinsPublisher:
ISBN:
Category :
Languages : en
Pages : 0
Book Description
We present evidence about the role of rent sharing in fostering the interdependence of labour markets around the world. Our results draw on a firm-level panel of more than 2,000 multinationals and over 5,000 of their affiliates, covering 47 home and host countries. We find considerable evidence that multinationals share profits internationally by paying higher wages to their workers in foreign affiliates in periods of higher headquarter profits. This occurs even across continents, and not only within Europe, as shown in earlier research. The results are robust to different tests, including a falsification exercise based on 'matched' parents. Finally, we show that rent sharing is higher when the affiliate is located in countries with specific relative characteristics, such as lower economic development or taxation, while it falls with the number of affiliates. We argue that these results are consistent with transfer pricing and bargaining views.
Global Goliaths
Author: James R. HinesPublisher: Brookings Institution Press
ISBN: 0815738560
Category : Business & Economics
Languages : en
Pages : 585
Book Description
How multinationals contribute, or don't, to global prosperity Globalization and multinational corporations have long seemed partners in the enterprise of economic growth: globalization-led prosperity was the goal, and giant corporations spanning the globe would help achieve it. In recent years, however, the notion that all economies, both developed and developing, can prosper from globalization has been called into question by political figures and has fueled a populist backlash around the world against globalization and the corporations that made it possible. In an effort to elevate the sometimes contentious public debate over the conduct and operation of multinational corporations, this edited volume examines key questions about their role, both in their home countries and in the rest of the world where they do business. Is their multinational nature an essential driver of their profits? Do U.S. and European multinationals contribute to home country employment? Do multinational firms exploit foreign workers? How do multinationals influence foreign policy? How will the rise of the digital economy and digital trade in services affect multinationals? In addressing these and similar questions, the book also examines the role that multinational corporations play in the outcomes that policymakers care about most: economic growth, jobs, inequality, and tax fairness.
Wages and Working Conditions in Multinational Enterprises
Author: International Labour OfficePublisher:
ISBN:
Category : Business & Economics
Languages : en
Pages : 60
Book Description
Comparison of statistical tables on wages and working conditions in multinational enterprise - covers fringe benefits, maximum and minimum wage rates (minimum wage), hours of work, holidays, leave of absence, etc. References.