Job Creation Abroad and Worker Retention at Home

Sascha O. Becker and Marc-Andreas Muendler

in The Analysis of Firms and Employees

Published by University of Chicago Press

Published in print December 2008 | ISBN: 9780226042879
Published online February 2013 | e-ISBN: 9780226042893 | DOI:
Job Creation Abroad and Worker Retention at Home

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The employment consequences of multinational enterprises' (MNEs) global expansions receive substantial public interest. Surprisingly, however, data at the job or worker level are rarely available to investigate this issue in more detail. This chapter presents such novel data for Germany and provides evidence on worker separations across industries and firm types—with a particular focus on the distinction between firms that are expanding abroad through ownership of foreign affiliates and those that are not. Contrary to a wide-held perception, both among researchers and in the general public, MNEs offer more stable jobs at home, thus contributing to job creation, and exhibit lower worker separation rates than their competitors without foreign expansions do. The chapter explores this difference in separation rates by relating it to foreign direct investment expansions in Central and Eastern Europe and worldwide.

Keywords: multinational enterprises; Germany; worker separation; job creation; foreign direct investment; Europe; foreign expansions; employment

Chapter.  13983 words.  Illustrated.

Subjects: Econometrics and Mathematical Economics

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