TY  - JOUR
AU  - Kravis,Irving B.
AU  - Lipsey,Robert E.
TI  - The Effect of Multinational Firms' Operations on Their Domestic Employment
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 2760
PY  - 1993
Y2  - December 1993
UR  - http://www.nber.org/papers/w2760
L1  - http://www.nber.org/papers/w2760.pdf
N1  - Author contact info:
Irving Kravis
Department of Economics
University of Pennsylvania
3718 Locust Walk/CR
Phiadelphia, PA 19104

Robert E. Lipsey
NBER
365 Fifth Avenue, Suite 5318
New York, NY 10016-4309
Tel: 212/817-7961
Fax: 212/817-1597
E-Mail: N/A user is deceased
M2  - featured in NBER digest on 1989-03-01
AB  - Given the level of its production in the U.S., a firm that produces more abroad tends to have fewer employees in the U.S. and to pay slightly higher salaries and wages to them. The most likely explanation seems to be that the larger a firm's foreign production, the greater its ability to allocate the more labor-intensive and less skill-intensive portions of its activity to locations outside the United States. This relationship is stronger among manufacturing firms than among service industry firms, probably because services are less tradable than manufactured goods or components, and service industries may therefore be less able to break up the production process to take advantage of differences in factor prices.
ER  -