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International Outsourcing and the Skill Structure of Labour Demand in the United Kingdom

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  • Alexander Hijzen
  • Holger Görg
  • Robert C. Hine

Abstract

This paper investigates empirically the link between international outsourcing and the skill structure of labour demand in the United Kingdom. It is the first detailed study of this issue for the UK. Outsourcing is calculated using import-use matrices of input-output tables for manufacturing industries for the period 1982 to 1996. Estimating a system of variable factor demands, our main results show that international outsourcing has had a strong negative impact on the demand for unskilled labour. Hence, international outsourcing is an important component in explanations of the changing skill structure of manufacturing industries in the United Kingdom.

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File URL: http://www.diw.de/documents/publikationen/73/diw_01.c.42406.de/dp437.pdf
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Bibliographic Info

Paper provided by DIW Berlin, German Institute for Economic Research in its series Discussion Papers of DIW Berlin with number 437.

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Length: 31 p.
Date of creation: 2004
Date of revision:
Handle: RePEc:diw:diwwpp:dp437

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Keywords: Outsourcing; Fragmentation; Trade; Wages; Skill-biased technological change;

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  1. Haskel, Jonathan & Heden, Ylva, 1999. "Computers and the Demand for Skilled Labour: Industry- and Establishment-Level Panel Evidence for the UK," Economic Journal, Royal Economic Society, vol. 109(454), pages C68-79, March.
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