JACOB F. KIRKEGAARD () (Peter G. Peterson Institute for International Economics, 1750 Massachusetts Avenue, NW, Washington, D.C. 20036-1903, USA)
Abstract
This paper evaluates data validity of available empirical sources and the extent of services sector labor market impact of offshoring in the US, EU-15 and Japan. A three-tier data validity hierarchy is identified, while the employment impact of offshoring in the three regions is found to be limited. Correspondingly, developing Asia is unlikely to experience large-scale employment gains as a destination region. Instead, the crucial role of domestic entrepreneurs in the growth of the Indian IT-related services industry is highlighted, as are the twin educational challenges facing developing Asia: the need to improve both primary and higher education simultaneously.
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