The paper evaluates the empirical effect of labor market institutions on foreign direct investment (FDI) decisions. To that aim, a firm-level dataset is used, that describes French firms’ expansion strategies abroad over the 1992-2002 period. Following Head and Mayer (2004b), the determinants...

The paper contributes to the living debate on the controversial effects of minimum wage policy on economic performances, focusing on its impact on firms’ location choice. The question is investigated through a theoretical model, that incorporates features from the new trade literature (Krugman...

We consider the impact minimum wage laws have on firms' location choices in a new economic geography model with exogenous minimum wage constraints. The minimum wage policy has a twofold influence on the relative attractiveness of the home country, simultaneously affecting its relative cost...

Economists interested in location choices usually focus their attention on investments abroad. This neglects the fact that multinational enterprises continue to invest domestically while undertaking foreign expansion. This paper compares investments at home and abroad. Our firm-level dataset...