IDEAS home Printed from https://ideas.repec.org/p/wii/wpaper/174.html
   My bibliography  Save this paper

Immigration and Offshoring: Two Forces of Globalisation and Their Impact on Employment and the Bargaining Power of Occupational Groups

Author

Listed:

Abstract

This paper estimates conditional demand models and, using a joint approach for the period 2008-2017, examines the impact of immigration and different measures of offshoring on the labour demand and demand elasticities of native workers in four different types of occupational groups managers/professionals, clerical workers, craft (skilled) workers and manual workers. The analysis is conducted using data for four EU economies Austria, Belgium, France and Spain. Our results point to important and occupation-specific direct and indirect effects of immigration and offshoring. Both offshoring – particularly services offshoring – and immigration have negative direct employment effects on all occupations, but native clerks and manual workers are affected the most, and native managers/professionals the least. Generally, offshoring exerts a stronger direct negative employment effect than does immigration. Our results also identify an important (labour demand) elasticity-channel of immigration and offshoring and show that some groups of native workers can also actually gain from globalisation through an improvement in their wage-bargaining position. Overall, our results indicate a deterioration in the bargaining power of native manual workers arising from both immigration and offshoring; an improvement in the bargaining position of native craft workers in the case of both immigration and offshoring; and an improvement in the bargaining position of native clerical workers and managers/professionals in the case of offshoring only. Finally, our analysis of the cross-effects of immigration highlights the important role of migrant managers/professionals for the labour demand and demand elasticities (bargaining power) of native clerical workers, craft and manual workers. Disclaimer Funding from the Austrian Federal Ministry of Labour, Social Affairs, Health and Consumer Protection is gratefully acknowledged.

Suggested Citation

  • Michael Landesmann & Sandra M. Leitner, 2020. "Immigration and Offshoring: Two Forces of Globalisation and Their Impact on Employment and the Bargaining Power of Occupational Groups," wiiw Working Papers 174, The Vienna Institute for International Economic Studies, wiiw.
    • Handle: RePEc:wii:wpaper:174
    as

    Download full text from publisher

    File URL: https://wiiw.ac.at/immigration-and-offshoring-two-forces-of-globalisation-and-their-impact-on-employment-and-the-bargaining-power-of-occupational-groups-dlp-5213.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Ottaviano, Gianmarco & Peri, Giovanni, 2008. "Immigration and National Wages: Clarifying the Theory and the Empirics," CEPR Discussion Papers 6916, C.E.P.R. Discussion Papers.
    2. Ferdinando Monte & Stephen J. Redding & Esteban Rossi-Hansberg, 2018. "Commuting, Migration, and Local Employment Elasticities," American Economic Review, American Economic Association, vol. 108(12), pages 3855-3890, December.
    3. Slaughter, Matthew J., 2001. "International trade and labor-demand elasticities," Journal of International Economics, Elsevier, vol. 54(1), pages 27-56, June.
    4. S. Longhi & P. Nijkamp & J. Poot, 2010. "Joint impacts of immigration on wages and employment: review and meta-analysis," Journal of Geographical Systems, Springer, vol. 12(4), pages 355-387, December.
    5. Senses, Mine Zeynep, 2010. "The effects of offshoring on the elasticity of labor demand," Journal of International Economics, Elsevier, vol. 81(1), pages 89-98, May.
    6. Dani Rodrik, 1998. "Has Globalization Gone Too Far?," Challenge, Taylor & Francis Journals, vol. 41(2), pages 81-94, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Michael Landesmann & Sandra M. Leitner, 2023. "Immigration and Offshoring: two forces of globalisation and their impact on employment and the bargaining power of occupational groups," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 159(2), pages 361-397, May.
    2. Michael Landesmann & Sandra M. Leitner, 2023. "Employment Effects of Offshoring, Technological Change and Migration in a Group of Western European Economies: Impact on Different Occupations," wiiw Working Papers 226, The Vienna Institute for International Economic Studies, wiiw.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Michael Landesmann & Sandra M. Leitner, 2023. "Immigration and Offshoring: two forces of globalisation and their impact on employment and the bargaining power of occupational groups," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 159(2), pages 361-397, May.
    2. Michael Landesmann & Sandra M. Leitner, 2018. "Immigration and Offshoring," wiiw Working Papers 156, The Vienna Institute for International Economic Studies, wiiw.
    3. Sato, Hitoshi & Zhu, Lianming, 2014. "Tariff reductions and labor demand elasticities : evidence from Chinese firm-level data," IDE Discussion Papers 463, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    4. David Hummels & Jakob R. Munch & Chong Xiang, 2018. "Offshoring and Labor Markets," Journal of Economic Literature, American Economic Association, vol. 56(3), pages 981-1028, September.
    5. Rotunno, Lorenzo & Wood, Adrian, 2020. "Wage inequality and skill supplies in a globalised world," Journal of Comparative Economics, Elsevier, vol. 48(3), pages 529-547.
    6. Antonis Adam & Thomas Moutos, 2014. "Industry-level labour demand elasticities across the Eurozone: will there be any gain after the pain of internal devaluation?," Working Papers 185, Bank of Greece.
    7. Lichter, Andreas & Peichl, Andreas & Siegloch, Sebastian, 2015. "The own-wage elasticity of labor demand: A meta-regression analysis," European Economic Review, Elsevier, vol. 80(C), pages 94-119.
    8. Kurz, Christopher & Senses, Mine Z., 2016. "Importing, exporting, and firm-level employment volatility," Journal of International Economics, Elsevier, vol. 98(C), pages 160-175.
    9. Neil Foster-McGregor & Johannes Poeschl & Robert Stehrer, 2016. "Offshoring and the Elasticity of Labour Demand," Open Economies Review, Springer, vol. 27(3), pages 515-540, July.
    10. Andreas Lichter & Andreas Peichl & Sebastian Siegloch, 2017. "Exporting and labour demand: Micro-level evidence from Germany," Canadian Journal of Economics, Canadian Economics Association, vol. 50(4), pages 1161-1189, November.
    11. Sly, Nicholas & Soderbery, Anson, 2014. "Strategic sourcing and wage bargaining," Journal of Development Economics, Elsevier, vol. 109(C), pages 172-187.
    12. Hwan-Joo Seo & Han Sung Kim & Young Soo Lee, 2015. "Globalization and Labor Demand Elasticities: Empirical Evidence from Nine OECD Countries," Korean Economic Review, Korean Economic Association, vol. 31, pages 413-439.
    13. Minjung Kim, 2022. "Trade and employment volatility of firms during the global financial crisis and post-crisis," Empirical Economics, Springer, vol. 62(5), pages 2091-2109, May.
    14. Martin Popp, 2023. "How elastic is labor demand? A meta-analysis for the German labor market," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 57(1), pages 1-21, December.
    15. Jaanika Merikull & Tairi Room, "undated". "Are foreign-owned firms different ? Comparision of employment volatility and elasticity of labour demand," Bank of Estonia Working Papers wp2014-1, Bank of Estonia.
    16. Dibyendu Maiti, 2019. "Trade, Labor Share, and Productivity in India’s Industries," ADB Institute Series on Development Economics, in: Gary Fields & Saumik Paul (ed.), Labor Income Share in Asia, chapter 0, pages 179-205, Springer.
    17. Kölling, Arnd & Mertens, Antje, 2020. "Exporting behavior and the demand for skills in German establishments," Working Papers 97, Berlin School of Economics and Law, Institute of Management Berlin (IMB).
    18. Michael Landesmann & Sandra M. Leitner, 2023. "Employment Effects of Offshoring, Technological Change and Migration in a Group of Western European Economies: Impact on Different Occupations," wiiw Working Papers 226, The Vienna Institute for International Economic Studies, wiiw.
    19. Robert Feenstra & Gordon Hanson, 2001. "Global Production Sharing and Rising Inequality: A Survey of Trade and Wages," NBER Working Papers 8372, National Bureau of Economic Research, Inc.
    20. Admasu Shiferaw & Degol Hailu, 2016. "Job creation and trade in manufactures: industry-level analysis across countries," IZA Journal of Labor & Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 5(1), pages 1-36, December.

    More about this item

    Keywords

    Offshoring; immigration; labour demand elasticity; bargaining power; occupations;
    All these keywords.

    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • F66 - International Economics - - Economic Impacts of Globalization - - - Labor

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wii:wpaper:174. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Customer service (email available below). General contact details of provider: https://edirc.repec.org/data/wiiwwat.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.