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Offshore Outsourcing and the size of the French Industrial Labor Force

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  • P. AUBERT

    (Insee)

  • P. SILLARD

    (Insee)

Abstract

We estimate the amount of job losses in the manufacturing sector in France due to offshore outsourcing. Our estimation is based on exhaustive, micro-level data covering all firms in the manufacturing sector in France from 1995 to 2001. We identify the groups or firms where employment decreases in French units and, at the same time, for which the imports of the good previously produced in France increases. Between 1995 and 2001, 13 500 jobs are lost each year on average in France due to offshore outsourcing in the manufacturing sector. In slightly less than half of the cases, offshore outsourcing is directed towards a low wage country : mainly China, but also North Africa, Eastern Europe, Asia, Brazil. Job losses are more frequent in some sectors, such as clothing, textile, domestic equipment, manufacture of electronic equipments and components. Nonetheless, offshore outsourcing is observed in nearly all sectors.

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File URL: http://www.insee.fr/fr/publications-et-services/docs_doc_travail/G2005-03.pdf
File Function: Document de travail de la DESE numéro G2005-03
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Bibliographic Info

Paper provided by Institut National de la Statistique et des Etudes Economiques, DESE in its series Documents de Travail de la DESE - Working Papers of the DESE with number g2005-03.

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Date of creation: 2005
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Handle: RePEc:crs:wpdeee:g2005-03

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Related research

Keywords: offshore outsourcing; international competition; job loss; industrial organization;

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  1. Drumetz, F., 2004. "La délocalisation," Bulletin de la Banque de France, Banque de France, issue 132, pages 27-42.
  2. Adrian Wood, 1995. "How Trade Hurt Unskilled Workers," Journal of Economic Perspectives, American Economic Association, vol. 9(3), pages 57-80, Summer.
  3. Mohamed Hedi Bchir & Yvan Decreux & Jean-Louis Guerin & Sebastien Jean, 2002. "MIRAGE, un modele d'equilibre general calculable pour l'evaluation des politiques commerciales," Economie Internationale, CEPII research center, issue 89-90, pages 109-153.
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