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Outstanding Outsourcers: A Firm- and Plant-Level Analysis of Production Sharing

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  • Christopher Johann Kurz
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    This paper examines the differences in characteristics between outsourcers and nonoutsourcers with a particular focus on productivity. The measure of outsourcing comes from a question in the 1987 and 1992 Census of Manufactures regarding plant-level purchases of foreign intermediate materials. There are two key findings. First, outsourcers are “outstanding.” That is, all else equal, outsourcers tend to have premia for plant and firm characteristics, such as being larger, more capital intensive, and more productive. One exception to this outsourcing premia is that wages tend to be the same for both outsourcers and non-outsourcers. Second, outsourcing firms, but not plants, have significantly higher productivity growth.

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    File URL: https://www2.census.gov/ces/wp/2006/CES-WP-06-02.pdf
    File Function: First version, 2006
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    Paper provided by Center for Economic Studies, U.S. Census Bureau in its series Working Papers with number 06-02.

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    Length: 38 pages
    Date of creation: Jan 2006
    Handle: RePEc:cen:wpaper:06-02
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