Are multinationals better bosses?

Quite a neat report was brought to my attention in recent days.  The folks at the OECD have taken a stab at a pretty fundamental (and controversial) international business question: do multinationals pay their workers better?

This is a big issue, because multinationals are often slammed as being exploitative of labour and as having a deleterious effect on host markets.  So what did they find?

“The evidence suggests that MNEs tend to provide better pay and working conditions than their domestic counterparts, especially when they operate in developing and emerging economies.”

They also found that takeovers by a foreign firm tend to also push up wages in the acquired firm.  Is this another nail in the coffin of anti-globalisation?

For more on the report there is a short podcast here.


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