Margins of multinational labor substitution

  title={Margins of multinational labor substitution},
  author={Marc-Andreas Muendler},
Margins of Multinational Labor Substitution Multinational labor demand responds to wage differentials at the extensive margin, when a multinational enterprise (MNE) expands into foreign locations, and at the intensive margin, when an MNE operates existing affiliates across locations. We derive conditions for parametric and nonparametric identification of an MNE model to infer elasticities of labor substitution at both margins, controlling for location selectivity. Prior studies have rarely… CONTINUE READING

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