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Offshoring and Outsourcing Potentials: Evidence from German Micro-Level Data

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  • Tobias Brändle
  • Andreas Koch

Abstract

This paper analyses the potentials of jobs to be offshored or outsourced. We use four waves of the BIBB/BAuA Survey on Qualification and Working Conditions in Germany and employ a large set of potential determinants of offshoring and outsourcing derived from the literature. Applying the datadriven method of principal component analysis, we provide two indicators that measure both the offshoring potentials (cross-country geographical relocation) and the outsourcing potentials (organisational relocation) at the level of jobs, occupations, tasks, or industries. Our results show significant variation in the determinants of both dimensions. In addition to the direct contribution, our paper provides two indicators that can be used to further investigate the economic effects of job offshorability.
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  • Tobias Brändle & Andreas Koch, 2017. "Offshoring and Outsourcing Potentials: Evidence from German Micro-Level Data," The World Economy, Wiley Blackwell, vol. 40(9), pages 1775-1806, September.
    • Handle: RePEc:bla:worlde:v:40:y:2017:i:9:p:1775-1806
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    Cited by:

    1. Körner, Konstantin, 2021. "The Wage Effects of Offshoring to the East and West: Evidence from Germany," IAB-Discussion Paper 202115, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    2. Konstantin Koerner, 2023. "The wage effects of offshoring to the East and West: evidence from the German labor market," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 159(2), pages 399-435, May.
    3. Sabina Szymczak, 2018. "Production fragmentation and employment. Country-industry level analysis based on WIOD 2016," Collegium of Economic Analysis Annals, Warsaw School of Economics, Collegium of Economic Analysis, issue 53, pages 131-146.
    4. Tobias Brändle, 2015. "Is offshoring linked to offshoring potential? Evidence from German linked employer–employee data," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 151(4), pages 735-766, November.
    5. Dr. Marc Ingo Wolter & Florian Bernardt, 2021. "Situation der gesellschaftlich notwendigen Dienstleistungen in Südniedersachsen," GWS Discussion Paper Series 21-1, GWS - Institute of Economic Structures Research.
    6. bernhard Boockmann, 2014. "Offshoring Potential and Employment Dynamics," IAW Discussion Papers 111, Institut für Angewandte Wirtschaftsforschung (IAW).
    7. Konstantin Koerner & Mathilde Le Moigne, 2023. "FDI and onshore task composition: evidence from German firms with affiliates in the Czech Republic," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 57(1), pages 1-42, December.

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    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, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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