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Fear of Outsourcing: Is It Justified?

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Author Info
Amiti, Mary
Wei, Shang-Jin

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Abstract

The recent media and political attention on service outsourcing from developed to developing countries gives the impression that outsourcing is exploding. As a result, workers in industrial countries are anxious about job losses. This Paper aims to establish what are the hypes and what are the facts. The results show that although service outsourcing has been steadily increasing it is still very low, and that in the United States and many other industrial countries ‘insourcing’ is greater than outsourcing. Using the United Kingdom as a case study, we find that job growth at a sectoral level is not negatively related to service outsourcing.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 4719.

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Date of creation: Oct 2004
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Handle: RePEc:cpr:ceprdp:4719

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Related research
Keywords: offshoring; outsourcing; services; trade;

Find related papers by JEL classification:
F10 - International Economics - - Trade - - - General
F20 - International Economics - - International Factor Movements and International Business - - - General

This paper has been announced in the following NEP Reports:

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  1. John T. Addison & Lutz Bellmann & André Pahnke & Paulino Teixeira, 2008. "A Note on the Determinants and Consequences of Outsourcing Using German Data," GEMF Working Papers 2008-04, GEMF - Faculdade de Economia, Universidade de Coimbra. [Downloadable!]
    Other versions:
  2. Jacob Funk Kirkegaard, 2005. "Outsourcing and Offshoring: Pushing the European Model Over the Hill, Rather Than Off the Cliff!," Peterson Institute Working Paper Series WP05-1, Peterson Institute for International Economics. [Downloadable!]
  3. Stefano Costa & Giovanni Ferri, 2007. "The determinants and employment effects of international outsourcing: the case of Italy," series 0016, Dipartimento di Scienze Economiche - Università di Bari, revised Apr 2007. [Downloadable!]
  4. Arpita Mukherjee & Paramita Deb Gupta, 2006. "Prospects for IT-Enabled Services Under a Indo-US FTA," Indian Council for Research on International Economic Relations, New Delhi Working Papers 187, Indian Council for Research on International Economic Relations, New Delhi, India. [Downloadable!]
  5. Ebru Kongar & Mark Price, 2007. "Is White the New Blue? The Impact on Gender Wage and Employment Differentials of Offshoring of White-collar Jobs in the United States," Working Paper Series, Department of Economics, University of Utah 2007_06, University of Utah, Department of Economics. [Downloadable!]
  6. J. Bradford Jensen & Lori G. Kletzer, 2005. "Tradable Services: Understanding the Scope and Impact of Services Outsourcing," Peterson Institute Working Paper Series WP05-9, Peterson Institute for International Economics. [Downloadable!]
  7. Yusuf, Shahid & Nabeshima, Kaoru, 2005. "Japan's changing industrial landscape," Policy Research Working Paper Series 3758, The World Bank. [Downloadable!]
  8. Anna M. Falzoni & Lucia Tajoli, 2008. "Offshoring and the skill composition of employment in the Italian manufacturing industries," CESPRI Working Papers 219, CESPRI, Centre for Research on Innovation and Internationalisation, Universita' Bocconi, Milano, Italy, revised Jul 2008. [Downloadable!]
  9. Erkki Koskela & Rune Stenbacka, 2007. "Equilibrium Unemployment with Outsourcing under Labour Market Imperfections," IZA Discussion Papers 2628, Institute for the Study of Labor (IZA). [Downloadable!]
  10. Daniel Horgos, 2007. "Labor Market Effects of International Outsourcing: How Measurement Matters," SOEPpapers 58, DIW Berlin, The German Socio-Economic Panel (SOEP). [Downloadable!]
    Other versions:
  11. Meenakshi Rishi & Sweta C. Saxena, 2005. "Is Outsourcing Really As Bad As It Is Made To Sound? A Re- Assessment And Some Perspective," Macroeconomics 0508009, EconWPA. [Downloadable!]
  12. Debaere, Peter & Lee, Hongshik & Lee, Joonhyung, 2006. "Does Where You Go Matter? The Impact of Outward Foreign Direct Investment on Multinationals' Employment at Home," CEPR Discussion Papers 5737, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  13. Lori G. Kletzer, 2005. "Globalization and job loss, from manufacturing to services," Economic Perspectives, Federal Reserve Bank of Chicago, issue Q II, pages 38-46. [Downloadable!]
  14. Patricia Waeger, 2007. "Trade in Health Services - An Analytical Framework Valuation Effects and Interest Rate Changes," Kiel Advanced Studies Working Papers 441, Kiel Institute for the World Economy. [Downloadable!]
  15. Erkki Koskela & Rune Stenbacka, 2007. "Equilibrium Unemployment with Outsourcing under Labour Market Imperfections," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
  16. Demiroglu, Ufuk, 2006. "Offshoring Of Service Jobs," MPRA Paper 6437, University Library of Munich, Germany. [Downloadable!]
  17. 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!]
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