Labor Effects of Multinational Firms Entry

Labor Effects of Multinational Firms Entry

by Isabela Manelici & Jose P. Vasquez

This project studies the impact of the entry of multinational corporations (MNCs) on worker outcomes using administrative data from Costa Rica. Policy makers from developed and developing countries alike and at all levels of government compete for the attraction of superstar firms (typically MNCs) through large economic incentives. In return, they expect an improvement in the labor market conditions of their jurisdiction. Despite the pervasiveness of such incentives, there is relatively little worker-level evidence on the impact of MNCs on the labor market and, in particular, on the distribution of labor earnings.  Our project would contribute to the literature by providing evidence on who are the winners, the losers, and how the impacts of MNC entry are distributed across different worker groups (by education, occupation, initial position in the income distribution etc.).

The Productivity Effects of Joining Multinational Supply Chains

The Productivity Effects of Joining Multinational Supply Chains

by Isabela Manelici and Jose-P. Vasquez

” Can local firms boost their productivity by supplying to multinational firms (MNCs)? The answer to this question has, so far, proven elusive. We make progress by using an administrative dataset that records all firm-to-firm transactions within Costa Rica.

Topics

Development

Initiatives

International Trade & Development