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A Note on the Determinants and Consequences of Outsourcing Using German Data

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Author Info

  • John T. Addison

    ()
    (Department of Economics, University of South Carolina, GEMF/University of Coimbra, and IZA Bonn)

  • Lutz Bellmann

    (Institut für Arbeitsmarkt- und Berufsforschung der Bundesagentur für Arbeit, Nürnberg)

  • André Pahnke

    (Institut für Arbeitsmarkt- und Berufsforschung der Bundesagentur für Arbeit, Nürnberg)

  • Paulino Teixeira

    ()
    (GEMF and Faculty of Economics of the University of Coimbra)

Abstract

Using German data from the Institute for Employment Research Establishment Panel, this paper constructs two main measures of outsourcing and examines their determinants and consequences for employment. There are some commonalities in the correlates of the two measures of outsourcing, as well as agreement on the absence of adverse employment effects across all industries. For one specification, however, some negative effects are reported for manufacturing industry, balanced by positive effects for the services sector for another. But there are no indications of survival bias. This is because the association between outsourcing and plant closings is predominantly negative, albeit poorly determined.

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Bibliographic Info

Paper provided by GEMF - Faculdade de Economia, Universidade de Coimbra in its series GEMF Working Papers with number 2008-04.

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Length: 28 pages
Date of creation: Sep 2008
Date of revision:
Publication status: Published in Journal for Labour Market Research 44(3): 231-244, 2011.
Handle: RePEc:gmf:wpaper:2008-04

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Keywords: outsourcing; organizational change; employment change; plant closings; value added;

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  1. Robert C. Feenstra & Gordon H. Hanson, 1999. "The Impact Of Outsourcing And High-Technology Capital On Wages: Estimates For The United States, 1979-1990," The Quarterly Journal of Economics, MIT Press, vol. 114(3), pages 907-940, August.
  2. Holger Görg & Aoife Hanley, 2004. "Does Outsourcing Increase Profitability?," The Economic and Social Review, Economic and Social Studies, vol. 35(3), pages 267-288.
  3. Amiti, Mary & Wei, Shang-Jin, 2004. "Fear of Outsourcing: Is It Justified?," CEPR Discussion Papers 4719, C.E.P.R. Discussion Papers.
  4. Gorg, Holger & Hanley, Aoife, 2005. "Labour demand effects of international outsourcing: Evidence from plant-level data," International Review of Economics & Finance, Elsevier, vol. 14(3), pages 365-376.
  5. Holger Görg & Aoife Hanley & Eric Strobl, 2008. "Productivity effects of international outsourcing: evidence from plant-level data," Canadian Journal of Economics, Canadian Economics Association, vol. 41(2), pages 670-688, May.
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Cited by:
  1. Joachim Wagner, 2009. "Offshoring and firm performance: Self-selection, effects on performance, or both?," Working Paper Series in Economics 153, University of Lüneburg, Institute of Economics.
  2. Jens Mohrenweiser & Paul Marginson & Uschi Backes-Gellner, 2009. "What Triggers the Establishment of a Works Council?," Working Papers 0101, University of Zurich, Institute for Strategy and Business Economics (ISU), revised Jul 2010.

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