Multinational mining companies, employment and knowledge transfer: Chile and Norway from ca. 1870 to 1940

Abstract

This article compares employment at multinational mining companies in Chile and Norway from ca. 1870 to 1940. I find that multinationals in Chile recruited foreigners to managing and middle-management positions, while Norwegian workers were heavily involved in management of multinationals in Norway. The exclusion of Chileans encouraged enclave tendencies and prevented knowledge transfer, while strong networks were created between multinationals and the local industry in Norway through job switching. Evidence suggests that local workers were employed if they were qualified and that discrepancies in institutions stimulating capacity building in the two countries largely explain the different employment patterns.