10 Job Creation Abroad and Worker Retention at Home. Introduction The employment consequences of multinational enterprises’ global expansions receive substantial public interest. | 10 ------------------------------------- Job Creation Abroad and Worker Retention at Home Sascha O. Becker and Marc-Andreas Muendler Introduction The employment consequences of multinational enterprises global expansions receive substantial public interest. Surprisingly however data at the job or worker level are rarely available to investigate this issue more closely. This chapter presents such novel data for Germany and provides evidence on worker separations across industries and firm types with a particular focus on the distinction between firms that are expanding abroad through ownership of foreign affiliates and those that are not. Contrary to a wide-held perception both among researchers and in the general public multinational enterprises offer more stable jobs at home and exhibit lower worker separation rates than their competitors without foreign expansions do. We explore this difference in separation rates by relating it to foreign direct investment FDI expansions in Central and Eastern Europe and worldwide and by controlling for a rich set of worker job homefirm foreign-affiliate and sector characteristics. Sascha O. Becker is Reader in Economics at the University of Stirling UK. Marc-Andreas Muendler is an assistant professor of economics at the University of California San Diego and a faculty research fellow at the NBER. We thank Till von Wachter Dieter Urban and participants at the Conference on the Analysis of Firms and Employees in Nuremberg for useful comments and discussions. We thank Heinz Herrmann Alexander Lipponer and Fred Ramb for support with BuBa firm data and Stefan Bender Iris Koch and Stephan Heuke for assistance with BA employment records. Karin Herbst and Thomas Wenger at BuBa kindly shared their string-matching expertise. Regis Barnichon Nadine Gropl Robert Jackle Daniel Klein and Stefan Schraufstetter provided excellent research assistance at various stages of the project. We gratefully acknowledge financial support from the .
