Discussion Paper Details

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Title: Curse or Blessing? Multinational Corporations and Labor Supply in Africa

Author(s): Mariapia Mendola, Giovanni Prarolo and Tommaso Sonno

Publication Date: January 2022

Keyword(s): Africa, job quality, Labor Supply and Multinational Enterprises

Programme Area(s): Development Economics and Macroeconomics and Growth

Abstract: Do multinational enterprises create local job opportunities in developing countries? We address this largely unanswered question by combining geolocalised individual-level data with information on domestic and foreign multinationals' affiliates in Sub-Saharan Africa over more than a decade. Having a multinational's affiliate within walking distance correlates with an increase in employment of +4.3% with respect to the sample mean. Multinationals' activity is correlated with higher off-farm and lower on-farm employment (+13% and -7%, respectively), a result driven by affiliates of foreign companies. Female employment and "good jobs" increase around affiliates, but only when they are part of foreign groups.

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Bibliographic Reference

Mendola, M, Prarolo, G and Sonno, T. 2022. 'Curse or Blessing? Multinational Corporations and Labor Supply in Africa'. London, Centre for Economic Policy Research.