Description
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.
