This paper investigates the dynamics of cross-listing in the United States and labor investment efficiency. Using a sample of 11,780 firm-year observations from 44 countries over the period 2000–2019, we found that cross-listing is positively associated with labor investment efficiency. This result suggests that cross-listing is associated with lower deviations in labor investment at the level explained by economic fundamentals. We also found that cross-listing reduces both overinvestment and underinvestment problems. The positive impact of cross-listing on labor investment efficiency is more prevalent for firms from countries with weaker institutions and higher liabilities due to foreignness and for those operating in industries with low litigation risk. Further evidence shows that labor investment efficiency following cross-listing in the United States translates into high firm valuation. Our findings are robust to endogeneity concerns and have important policy implications.