Outsourcing Potentials and International Tradability of Jobs - Evidence from German Micro-Level Data
AbstractWe analyze the offshorability of jobs using the German Qualifications and Career Survey. The paper differentiates between outsourcing potential and international tradability and systematically uses a large set of potential determinants of organizational and spatial relocation derived from the existing literature on offshoring. Applying principal component analysis, we are able to compute two indicators explaining both the outsourcing potential and the international tradability of an individual employee according to the characteristics of the job performed. The results show that there is significant variation along the two dimensions across tasks, occupations, and industries. We apply our results to analyze the effects of outsourcing potential and international tradability on individual income and find that especially the latter has a negative effect. Moreover, our computed indicators can be used to further investigate the economic effects of offshoring potential.
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Bibliographic InfoPaper provided by Institut für Angewandte Wirtschaftsforschung (IAW) in its series IAW Discussion Papers with number 93.
Length: 31 pages
Date of creation: Jan 2013
Date of revision:
Outsourcing; International Trade; Offshoring; Trade in Tasks;
Find related papers by JEL classification:
- D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
- F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
- O33 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
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