Double PhD Seminar

16:00

Lisa Timm (University of Amsterdam)

Title: The impact of multinational enterprises on local labor markets: What drives the effect on domestic workers?"

Abstract: This paper examines the impact of multinational enterprises (MNEs) on wages and employment in domestic firms, using comprehensive administrative data from the Netherlands. To address the endogeneity of firm location choice, I develop a shift-share instrumental variable based on the local labour market composition by sector. I find that an increase in the employment share of MNEs in a region leads to higher wages for workers in domestic firms, while firm size and profits decline. I explore how MNE's access to the foreign labour market influences local wage dynamics. Using the proportion of migrants hired by MNEs as a proxy for their access to the foreign labour market, the results reveal a stronger impact in regions where MNEs rely more on local labour and conversely import less immigrant labour. This suggests that the observed wage increase is partly driven by heightened demand for local labour.

16:45

Lucas Saru (Vrije Universiteit Amsterdam)

Title: The Cross-Section of Price Efficiency

Abstract: Inventory management by market makers can result in quoted prices deviating from unobserved fundamental prices. In a setting where prices have a factor structure, optimal inventory management implies that pricing errors of different securities are positively correlated if they load on the same risk factors. Using a state space model, I obtain estimates of 1-minute pricing errors for a panel of 1500 US stocks for the period 2016 - 2022. Daily cross-sectional regressions of pricing error correlations reveal that pricing error correlations increase in the similarity of factor betas. Investigating the role of liquidity demand in addition to liquidity supply, my results show that ETF flows are associated with higher pricing error correlations