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Offshoring, Multinationals And Labour Market: A Review Of The Empirical Literature

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  • Rosario Crin�
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    Abstract

    This paper reviews the empirical literature on the effects of offshoring and foreign activities of multinational enterprises on developed countries' labour markets. Results suggest that material offshoring worsens wage inequality between skilled and unskilled workers; it also seems to make employment more volatile, by raising the elasticity of labour demand and the risk of job losses. Service offshoring exerts at most small negative effects on total employment, and changes the composition of the workforce in favour of high-skilled white-collar employees. Multinationals tend to substitute domestic and foreign labour in response to changes in relative wages across countries; substitutability is weak, however, and mainly driven by horizontal, market-seeking foreign direct investments. Copyright � 2008 The Author. Journal compilation � 2008 Blackwell Publishing Ltd.

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    Bibliographic Info

    Article provided by Wiley Blackwell in its journal Journal of Economic Surveys.

    Volume (Year): 23 (2009)
    Issue (Month): 2 (04)
    Pages: 197-249

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    Handle: RePEc:bla:jecsur:v:23:y:2009:i:2:p:197-249

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    Cited by:
    1. Rosario Crinò, 2009. "Employment Effects of Service Offshoring: Evidence from Matched Firms," Working Papers 417, Barcelona Graduate School of Economics.
    2. Rosario Crinò, 2012. "Service Offshoring and the Skill Composition of Labour Demand," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 74(1), pages 20-57, 02.
    3. Joachim Wagner, 2011. "Offshoring and firm performance: self-selection, effects on performance, or both?," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 147(2), pages 217-247, June.
    4. Silvia Rocha-Akis & Ronnie Schöb, 2010. "Welfare Policy in the Presence of Unionised Labour and Internationally Mobile Firms," CESifo Working Paper Series 3032, CESifo Group Munich.
    5. Hess, Sebastian, 2011. "Outsourcing, Regional Trade and Specialization: An Application to in the German Pig Sector," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114537, European Association of Agricultural Economists.
    6. Hess, Sebastian, 2011. "Outsourcing Decisions Of Pig Producers In Baden-Württemberg," 51st Annual Conference, Halle, Germany, September 28-30, 2011 114509, German Association of Agricultural Economists (GEWISOLA).

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