Skill-Biased Effects of Service Offshoring in Western Europe
AbstractThis paper studies the e¤ects of service offshoring on the skill composition of labor demand in Western Europe, using comparable data for nine economies during the 1990s. A short-run translog cost function allows derivation of demand elasticities for three labor inputs. Potential endogeneity and measurement error in service offshoring are accounted for by using instruments based on EBRD indexes of telecommunication reform in Eastern Europe. Results show that service offshoring is skill-biased, because it raises relative labor demand for high skilled workers.
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Bibliographic InfoPaper provided by KITeS, Centre for Knowledge, Internationalization and Technology Studies, Universita' Bocconi, Milano, Italy in its series KITeS Working Papers with number 205.
Length: pages 29
Date of creation: Oct 2007
Date of revision: Oct 2007
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Find related papers by JEL classification:
- F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
- J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-01-19 (All new papers)
- NEP-BEC-2008-01-19 (Business Economics)
- NEP-EEC-2008-01-19 (European Economics)
- NEP-HRM-2008-01-19 (Human Capital & Human Resource Management)
- NEP-INT-2008-01-19 (International Trade)
- NEP-LAB-2008-01-19 (Labour Economics)
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