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Skill-Biased Effects of Service Offshoring in Western Europe

Author

Listed:
  • Rosario Crinò

    (CESPRI - Bocconi University, Milan, Italy.)

Abstract

This paper studies the e¤ects of service offshoring on the skill composition of labor demand in Western Europe, using comparable data for nine economies during the 1990s. A short-run translog cost function allows derivation of demand elasticities for three labor inputs. Potential endogeneity and measurement error in service offshoring are accounted for by using instruments based on EBRD indexes of telecommunication reform in Eastern Europe. Results show that service offshoring is skill-biased, because it raises relative labor demand for high skilled workers.

Suggested Citation

  • Rosario Crinò, 2007. "Skill-Biased Effects of Service Offshoring in Western Europe," KITeS Working Papers 205, KITeS, Centre for Knowledge, Internationalization and Technology Studies, Universita' Bocconi, Milano, Italy, revised Oct 2007.
    • Handle: RePEc:cri:cespri:wp205
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    File URL: ftp://ftp.unibocconi.it/pub/RePEc/cri/papers/WP205Crino.pdf
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    Cited by:

    1. Shepherd, Ben & Pasadilla, Gloria, 2012. "Services as a New Engine of Growth for ASEAN, the People’s Republic of China, and India," ADBI Working Papers 349, Asian Development Bank Institute.
    2. Lichter, Andreas & Peichl, Andreas & Siegloch, Sebastian, 2015. "The own-wage elasticity of labor demand: A meta-regression analysis," European Economic Review, Elsevier, vol. 80(C), pages 94-119.

    More about this item

    Keywords

    Service Offshoring; Labor Demand; Instrumental Variable Estimation.;
    All these keywords.

    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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