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Offshoring and the Onshore Composition of Tasks and Skills

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  • Sascha O. Becker
  • Karolina Ekholm

    ()

  • Marc-Andreas Muendler

Abstract

We analyze the relationship between o®shoring and the onshore workforce composition tasks, occupations, and workforce skills. O®shoring is associated with a statistically signi¯cant shift towards more non-routine and more interactive tasks, and with a shift towards highly educated workers. Moreover, the shift towards highly educated work- ers is in excess of what is implied by changes in either the task or the occupational composition. Whether o®shored activities are located in low-income or high-income countries does not alter the direction of the relationship. We ¯nd o®shoring to predict between 10 and 15 percent of observed changes in wage-bill shares of highly educated workers and measures of non-routine and interactive tasks.

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Bibliographic Info

Paper provided by Institut für Angewandte Wirtschaftsforschung (IAW) in its series IAW Discussion Papers with number 55.

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Length: 56 pages
Date of creation: Nov 2009
Date of revision:
Handle: RePEc:iaw:iawdip:55

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Keywords: trade in tasks; multinational firms; demand for labor; linked-employer-employee data;

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