This text considers the impact of multinational firms and global
competition on labour markets. This study combines an industry
level and an analysis on the wage and employment effects of
multinational companies. The author explains how many foreign-owned
companies based in the UK pay higher wages in absolute terms than
to domestically-owned firms, but not sufficiently high to match
their even greater productivity. Hence, for foreign-owned firms the
share of wages in output or in total outcome generated tends to be
low. In view of this, important questions are raised regarding how
global changes in the structure of production may affect labour
markets and the organization of work in the future.
General
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