Multinational Corporations and Labour Supply in Africa

Abstract

Do multinational enterprises impact locals’ labor opportunities in developing countries? We address this largely unanswered question by combining geolocalised individual-level data with information on domestic and foreign multinationals’ affiliates spanning Sub-Saharan Africa. Having a multinational’s affiliate within walking distance correlates with an average boost in employment (+4.3%), in comparison to those without. Multinationals’ activity is correlated with higher o –farm (+13%) and lower on-farm (-7%) employment, a result particularly driven by affiliates from foreign companies. Average job quality increases around affiliates, but only when part of foreign groups.