Offshoring and the Skill Structure of Labour Demand
Abstract
In this paper we examine the link between international outsourcing – or offshoring – and the skill structure of labour demand for a sample of 40 countries over the period 1995 2009. The paper uses data from the recently compiled World-Input-Output-Database (WIOD) to estimate a system of variable factor demand equations. These data allow us to exploit both a cross-country and cross-industry dimension and split employment into three skill categories. Our results indicate that while offshoring has impacted negatively upon all skill levels, the largest impacts have been observed for medium-skilled (and to a lesser extent high-skilled) workers. Such results are consistent with recent evidence indicating that medium-skilled workers have suffered to a greater extent than other skill types in recent years.Download Info
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Paper provided by The Vienna Institute for International Economic Studies, wiiw in its series wiiw Working Papers with number 86.Length: 22 pages including 8 Tables and 4 Figures
Date of creation: Jun 2012
Date of revision:
Publication status: Published as wiiw Working Paper
Handle: RePEc:wii:wpaper:86
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Related research
Keywords: offshoring; trade; wages; labour demand;Find related papers by JEL classification:
- F14 - International Economics - - Trade - - - Empirical Studies of Trade
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-09-03 (All new papers)
- NEP-BEC-2012-09-03 (Business Economics)
- NEP-INT-2012-09-03 (International Trade)
- NEP-LAB-2012-09-03 (Labour Economics)
- NEP-LMA-2012-09-03 (Labor Markets - Supply, Demand, & Wages)
- NEP-MIG-2012-09-03 (Economics of Human Migration)
References
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