Do multinational enterprises create local job opportunities in developing countries? We address this question in the context of Sub-Saharan Africa by combining information on domestic and foreign multinationals’ affiliates over more than a decade with geolocalised individual-level data on labor supply. Having a multinational’s affiliate within walking distance correlates with an increase in employment of about +4% with respect to the sample mean. Multinationals’ activity is correlated with higher off–farm and lower on–farm employment (+13% and −7%, respectively), a result driven by affiliates of foreign companies. Female employment and "good jobs" increase around affiliates, but only when they are part of foreign groups. A battery of robustness checks and a retrospective analysis exploiting time variation in the individual labor market entry deliver qualitatively similar results, suggesting our findings do not suffer major identification issues.
Mendola, M., Prarolo, G., Sonno, T. (2024). Curse or blessing? multinational corporations and labor market outcomes in Africa. REVIEW OF WORLD ECONOMICS, online first, 1-33 [10.1007/s10290-024-00547-3].
Curse or blessing? multinational corporations and labor market outcomes in Africa
Prarolo, Giovanni
;Sonno, Tommaso
2024
Abstract
Do multinational enterprises create local job opportunities in developing countries? We address this question in the context of Sub-Saharan Africa by combining information on domestic and foreign multinationals’ affiliates over more than a decade with geolocalised individual-level data on labor supply. Having a multinational’s affiliate within walking distance correlates with an increase in employment of about +4% with respect to the sample mean. Multinationals’ activity is correlated with higher off–farm and lower on–farm employment (+13% and −7%, respectively), a result driven by affiliates of foreign companies. Female employment and "good jobs" increase around affiliates, but only when they are part of foreign groups. A battery of robustness checks and a retrospective analysis exploiting time variation in the individual labor market entry deliver qualitatively similar results, suggesting our findings do not suffer major identification issues.File | Dimensione | Formato | |
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