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How Offshoring Can Affect the Industries’ Skill Composition

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  • Daniel Horgos

    (Helmut Schmidt University and Centro Studi Luca d’Agliano)

  • Lucia Tajoli

    (Politecnico di Milano and KITeS – Bocconi University)

Abstract

While most offshoring literature focus on the effects on relative wages, other implications do not receive the necessary attention. This paper investigates effects on the industries’ skill ratio. It sum-marizes the empirical literature, discusses theoretical findings, and provides first empirical evidence for Germany. As results show, effects are mainly driven by the industry where offshoring takes place. In high skill intensive industries, the high skill labor ratio increases (vice versa for low skill intensive industries). Since this result is in line with other empirical findings but seems to contradict with theory, the paper additionally discusses possible explanations.

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File URL: http://www.dagliano.unimi.it/media/WP2010_296.pdf
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Bibliographic Info

Paper provided by Centro Studi Luca d\'Agliano, University of Milano in its series Development Working Papers with number 296.

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Length: 20
Date of creation: 31 Jul 2010
Date of revision:
Handle: RePEc:csl:devewp:296

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Keywords: o shoring; labor market implications; skill ratio; skill composition;

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  1. Vanessa Strauss-Kahn, 2003. "The Role of Globalization in the Within-Industry Shift Away from Unskilled Workers in France," NBER Working Papers 9716, National Bureau of Economic Research, Inc.
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