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Outsourcing, Imports and Labour Demand

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Author Info
Falk, Martin
Koebel, Bertrand M

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Abstract

This paper examines the effects of purchased services and imported intermediate materials on the labour demand for different skills in German manufacturing sectors. We derive and estimate a factor demand system based on the generalised Box-Cox cost function nesting both the normalised quadratic and the translog functional form. We find that the impacts of output and capital growth are more important in explaining the demand for heterogeneous labour than substitution effects between labour and non-labour inputs. Similarly, the increasing use of both imported materials and purchased services is a consequence of output growth rather than input substitution. Copyright 2002 by The editors of the Scandinavian Journal of Economics.

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Publisher Info
Article provided by Blackwell Publishing in its journal Scandinavian Journal of Economics.

Volume (Year): 104 (2002)
Issue (Month): 4 (December)
Pages: 567-86
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Handle: RePEc:bla:scandj:v:104:y:2002:i:4:p:567-86

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  1. Andreas Knabe & Ronnie Schöb & Joachim Weimann, 2006. "Marginal Employment Subsidization: A New Concept and a Reappraisal," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
  2. Svaleryd, helena, 2005. "Do Entrenched Managers Pay Their Workers More?," Working Paper Series 654, Research Institute of Industrial Economics. [Downloadable!]
  3. Deborah Schöller, 2006. "Service Offshoring: A Challenge for Employment? Evidence from Germany," Violette Reihe Arbeitspapiere 23-2006, Promotionsschwerpunkt Globalisierung und Beschaeftigung, revised Dec 2006. [Downloadable!]
  4. Ronny Freier & Viktor Steiner, 2007. "'Marginal Employment' and the Demand for Heterogenous Labour: Empirical Evidence from a Multi-factor Labour Demand Model for Germany," Discussion Papers of DIW Berlin 662, DIW Berlin, German Institute for Economic Research. [Downloadable!]
  5. Ekholm, Karolina & Hakkala, Katariina, 2006. "The Effect of Offshoring on Labour Demand: Evidence from Sweden," CEPR Discussion Papers 5648, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  6. Spitz, Alexandra & Bertschek, Irene, 2003. "IT, Organizational Change and Wages," ZEW Discussion Papers 03-69, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
  7. Ronny Freier & Viktor Steiner, 2007. "‘Marginal Employment’ and the Demand for Heterogenous Labour: Empirical Evidence from a Multi-Factor Labour Demand Model for Germany," IZA Discussion Papers 2577, Institute for the Study of Labor (IZA). [Downloadable!]
  8. Bernhard Michel & François Rycx, 2009. "Does Offshoring of Materials and Business Services Affect Employment? Evidence from a Small Open Economy," Working Papers DULBEA 09-10.RS, Université libre de Bruxelles, Department of Applied Economics (DULBEA). [Downloadable!]
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  9. Sanghoon Ahn & Kyoji Fukao & Keiko Ito, 2008. "The Impact of Outsourcing on the Japanese and South Korean Labor Markets: International Outsourcing of Intermediate Inputs and Assembly in East Asia," Global COE Hi-Stat Discussion Paper Series gd08-001, Institute of Economic Research, Hitotsubashi University. [Downloadable!]
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  10. Alexander Hijzen & Holger Görg & Robert C. Hine, 2004. "International Outsourcing and the Skill Structure of Labour Demand in the United Kingdom," Discussion Papers of DIW Berlin 437, DIW Berlin, German Institute for Economic Research. [Downloadable!]
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  11. Geishecker, Ingo & Görg, Holger, 2004. "Winners and Losers: Fragmentation, Trade and Wages Revisited," IZA Discussion Papers 982, Institute for the Study of Labor (IZA). [Downloadable!]
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  12. Giordano Mion & Hylke Vandenbussche & Linke Zhu, 2009. "Trade with China and Skill Upgrading: Evidence from Belgian Firm Level Data," LICOS Discussion Papers 24809, LICOS - Centre for Institutions and Economic Performance, K.U.Leuven. [Downloadable!]
  13. Böckerman, Petri & Riihimäki, Elisa, 2009. "International outsourcing and labour demand: Evidence from Finnish firm-level data," MPRA Paper 16903, University Library of Munich, Germany. [Downloadable!]
  14. Rosario Crino, 2006. "Are U.S. White-Collar Really at Risk of Service Offshoring?," CESPRI Working Papers 183, CESPRI, Centre for Research on Innovation and Internationalisation, Universita' Bocconi, Milano, Italy, revised Oct 2006. [Downloadable!]
  15. Kurt Kratena, 2004. "Intra-Industry Trade and Input Demand," WIFO Working Papers 238, WIFO. [Downloadable!]
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