Published in:University of Chicago, Becker Friedman Institute for Economics Working Paper ; No. 2020-15
Extent:
1 Online-Ressource (75 p)
Language:
English
DOI:
10.2139/ssrn.3548038
Identifier:
Origination:
Footnote:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments February 29, 2020 erstellt
Description:
Many employers link wages at the firm's establishments outside of the home region to the level at headquarters. Multinationals that anchor-to-the headquarters also transmit wage changes arising from shocks to minimum wages and exchange rates in the home country/state to their foreign establishments. Such multinationals fire more low-skill workers and hire fewer new workers abroad after a permanent (minimum wage-induced) foreign establishment wage increase originating in shocks to headquarter wages, but not after a temporary (exchange rate-induced) one. We show this using data on 1,060 multinationals' establishments across the world and in employee-level data on the same employers' establishments in Brazil