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Outsourcing, Occupational Restructuring, and Employee Well-Being: Is There a Silver Lining?

  • Petri Böckerman
  • Mika Maliranta

This paper examines the relationship between outsourcing and various aspects of employee well-being by devoting special attention to the role of occupational restructuring as a conveying mechanism. Using linked employer-employee data, we find that offshoring involves job destruction, especially when the destination is a low-wage country. In such circumstances, staying employees' job satisfaction is reduced. However, the relationship between outsourcing and employee well-being is not entirely negative. Our evidence also shows that offshoring to high-wage countries stimulates the vertical mobility of employees in affected firms in a manner that improves perceived well-being, particularly in terms of better prospects for promotion.

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Article provided by Wiley Blackwell in its journal Industrial Relations: A Journal of Economy and Society.

Volume (Year): 52 (2013)
Issue (Month): 4 (October)
Pages: 878-914

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Handle: RePEc:bla:indres:v:52:y:2013:i:4:p:878-914
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