Labor Market Rigidity at Home and Multinational Corporations' Flexible Task Reallocation Abroad

• Tác giả: JaeBin Ahn
• Ngôn ngữ: eng
• Ký hiệu phân loại: 331.62 Immigrants and aliens
• Thông tin xuất bản: Washington, DC : World Bank, 2022
• Bộ sưu tập: Tài liệu truy cập mở
• ID: 246723
• Chủ đề: 1. LABOR MARKET RIGIDITY; 2. MINIMUM WAGE; 3. MNC; 4. MULTINATIONAL CORPORATIONS; 5. TASK REALLOCATION

Tóm tắt

An unprecedented regime change following the 2017 presidential impeachment led to a dramatic shift to more rigid labor market policies in the Republic of Korea, represented by consecutive double-digit hikes in the minimum wage in the next two years. Using a firm-level data set with detailed information about foreign affiliates for 2013~19, this paper assesses the employment consequences of stricter labor market regulations. The empirical evidence uncovers a relatively unexplored mechanism through which domestic labor market rigidity can potentially reduce domestic employment as multinational firms with flexible internal networks reallocate tasks across borders.