CUED
Center
for Urban Economic Development
University of Illinois at Chicago
Transnational Investment and Job Loss: The Case of Chicago, Appendix 2
Project
Number: 350-C
Report Date: October 1992
Author(s): William Cecil
View Paper in PDF format (132k)
In the main body of this report we estimated the number of jobs lost in the City of Chicago during the decade of the 1980's as a result of factory closings or major layoffs by transnational corporate parents. That estimate was 79,744 jobs. We have described the methodology used to make these estimates in detail in the main report. In this appendix to the report we first summarize the criteria behind our definition of a transnational corporate parent. We further define five categories of job losses we developed in the course of our research. Finally, we provide a detailed look at the firm by firm analysis we used to compile the figures presented in our report. This presentation is organized by industry.
Transnational Corporation Criteria
1. Publicly owned (or published financial data available).
2. More than
100 employees.
3. More than one plant.
4. Operations in three or more
countries.
Job Loss Category
Category I:
Closing or job loss occurring as the parent's foreign operations were expanding.
Capital, once used in Chicago, is freed for expansion of foreign operations.
Category II: Closing or job losses occurring due to a commodity shift in the context
of strong foreign operations. Capital is taken from the production of the commodity
being produced in the Chicago plant and used to produce another commodity at another
plant.
Category III: Closing or job losses occurring in a context of strong
transnational activity for reasons not included in the other categories.
Category
IV: Closing or job loss due to commodity shift without foreign operation.
Category V: Closing due to other factors in the absence of foreign operations.
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