Wages and international rent sharing in multinational firms

被引:109
作者
Budd, JW [1 ]
Konings, J
Slaughter, MJ
机构
[1] Univ Minnesota, Minneapolis, MN 55455 USA
[2] Catholic Univ Louvain, B-3000 Louvain, Belgium
[3] Dartmouth Coll, Hanover, NH 03755 USA
关键词
D O I
10.1162/0034653053327586
中图分类号
F [经济];
学科分类号
02 ;
摘要
We use a unique firm-level panel of multinational parents and their foreign affiliates to analyze whether profits are shared across borders within multinational firms. Affiliate wages are estimated to respond to both affiliate and parent profitability. The elasticity of affiliate wages to parent profits per worker is approximately 0.03, which can explain over 20% of observed variation in affiliate wages. These results reveal a previously ignored aspect of rent sharing. They also reveal an important micro-level linkage with potential macro-level implications. International rent sharing can transmit economic conditions across countries, and can thereby provide an implicit risk-sharing mechanism.
引用
收藏
页码:73 / 84
页数:12
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