Title: Employment and Income Effects of Multinational Production by U.S. Computer Firms
Author: Dollar, David
Author Affiliation: UCLA
Source: International Economic Journal, Winter 1989, v. 3, no. 4, pp. 1-17
Publication Date: Winter 1989
Abstract: This paper considers the hypothesis that the expansion of multinational corporations has led to decreasing relative demand for production workers in the U.S. and increasing demand for white-collar employees, especially engineers and managers. The development of the multinational corporation affects factor demand by allowing for the direct export of services created by professional- technical labor. It is shown that between 1967 and 1984 real wages of semi-skilled production workers in the U.S. computing equipment industry fell substantially, both absolutely and relative to earnings of white-collar occupations. At the same time, employment of production workers relative to other types of labor also declined significantly.

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