Do Multinational Enterprises Substitute Parent Jobs for Foreign Ones? Evidence from Firm Level Panel Data

This paper analyzes the demand for labor by home multinational enterprises (MNEs) in Europe. To this end we use a unique firm level panel data set of more than 1,200 European multinational enterprises and their subsidiaries that are located in either the European Union, Central and Eastern Europe or both. We investigate whether employment in the MNEs' subsidiaries are substitutes for home employment or in other words we investigate whether European MNEs can easily relocate employment between the parent and their daughter(s). Our main findings can be summarized as follows: (i) We find evidence for substitution effects between parent and foreign employment. A decline of 10% in MNE affiliate's wage costs is associated with a decline in parent employment of between 1.5% and 2% on average. (ii) This effect is mainly driven by firms that operate in the manufacturing sector. Moreover, the substitution effects mainly take place between EU parents and their affiliates located within the EU, rather than affiliates located in Central and Eastern Europe. (iii) We also report results for the non-manufacturing firms, where we find no substitution effects between parents and daughters in the service sectors, while we do find positive substitution effects between parents and their affiliates in Central and Eastern Europe for the firms operating in the wholesale trade and construction sectors. Our results suggest that on average the competition from low wage countries in Central and Eastern Europe did not contribute to a relocation of domestic jobs to Central and Eastern Europe. Substitution effects do take place, however, they mainly occur between parent firms and their affiliates that are located in the European Union.http://deepblue.lib.umich.edu/bitstream/2027.42/39755/3/wp371.pd

Parents Behind Bars: What Happens to Their Children?

Children do not often figure in discussions of incarceration, but new research finds more than five million U.S. children have had at least one parent in prison at one time or another -- about three times higher than earlier estimates that included only children with a parent currently incarcerated. This report uses the National Survey of Children's Health to examine both the prevalence of parental incarceration and child outcomes associated with it.Previous research has found connections between parental incarceration and childhood health problems, behavior problems, and grade retention. It has also been linked to poor mental and physical health in adulthood

Do Multinational Enterprises Substitute Parent Jobs for Foreign Ones? Evidence from Firm Level Panel Data

This paper analyzes the demand for labor by home multinational enterprises (MNEs) in Europe. To this end we use a unique firm level panel data set of more than 1,200 European multinational enterprises and their subsidiaries that are located in either the European Union, Central and Eastern Europe or both. We investigate whether employment in the MNEs' subsidiaries are substitutes for home employment or in other words we investigate whether European MNEs can easily relocate employment between the parent and their daughter(s). Our main findings can be summarized as follows: (i) We find evidence for substitution effects between parent and foreign employment. A decline of 10% in MNE affiliate's wage costs is associated with a decline in parent employment of between 1.5% and 2% on average. (ii) This effect is mainly driven by firms that operate in the manufacturing sector. Moreover, the substitution effects mainly take place between EU parents and their affiliates located within the EU, rather than affiliates located in Central and Eastern Europe. (iii) We also report results for the non-manufacturing firms, where we find no substitution effects between parents and daughters in the service sectors, while we do find positive substitution effects between parents and their affiliates in Central and Eastern Europe for the firms operating in the wholesale trade and construction sectors. Our results suggest that on average the competition from low wage countries in Central and Eastern Europe did not contribute to a relocation of domestic jobs to Central and Eastern Europe. Substitution effects do take place, however, they mainly occur between parent firms and their affiliates that are located in the European Union.relocation, multinational enterprises, labor demand

Structured Linearization of Discrete Mechanical Systems for Analysis and Optimal Control

Variational integrators are well-suited for simulation of mechanical systems because they preserve mechanical quantities about a system such as momentum, or its change if external forcing is involved, and holonomic constraints. While they are not energy-preserving they do exhibit long-time stable energy behavior. However, variational integrators often simulate mechanical system dynamics by solving an implicit difference equation at each time step, one that is moreover expressed purely in terms of configurations at different time steps. This paper formulates the first- and second-order linearizations of a variational integrator in a manner that is amenable to control analysis and synthesis, creating a bridge between existing analysis and optimal control tools for discrete dynamic systems and variational integrators for mechanical systems in generalized coordinates with forcing and holonomic constraints. The forced pendulum is used to illustrate the technique. A second example solves the discrete LQR problem to find a locally stabilizing controller for a 40 DOF system with 6 constraints.Comment: 13 page