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Job Creation Abroad and Worker Retention at Home

Job Creation Abroad and Worker Retention at Home

Chapter:
(p.309) 10 Job Creation Abroad and Worker Retention at Home
Source:
The Analysis of Firms and Employees
Author(s):
Sascha O. BeckerMarc-Andreas Muendler
Publisher:
University of Chicago Press
DOI:10.7208/chicago/9780226042893.003.0011

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

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