Employment, job turnover, and trade in producer services: UK firm-level evidence
We provide the first firm-level evidence of the impact of the trade in producer services (`offshoring') on the labour market. Using a new data set from the UK that measures trade in services at the firm level, we find no evidence that importing intermediate services is associated with job losses or greater worker turnover. Using regression to control for observable differences between firms that import service inputs and those that do not, we show that firms that start importing intermediate services experience faster employment growth than equivalent firms that do not. This seems likely to be the result of positive demand shocks, which cause a simultaneous increase in employment, output, and use of imported service inputs.
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Volume (Year): 44 (2011)
Issue (Month): 3 (August)
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References listed on IDEAS
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- James Markusen, 2005.
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NBER Working Papers
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- Megan MacGarvie, 2006. "Do Firms Learn from International Trade?," The Review of Economics and Statistics, MIT Press, vol. 88(1), pages 46-60, February.
- Ronald W. Jones, 2000. "A Framework for Fragmentation," Tinbergen Institute Discussion Papers 00-056/2, Tinbergen Institute. Full references (including those not matched with items on IDEAS)
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