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How Offshoring Can Affect the Industries’ Skill Composition

Author

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  • Daniel Horgos

    (Helmut Schmidt University and Centro Studi Luca d’Agliano)

  • Lucia Tajoli

    (Politecnico di Milano and KITeS – Bocconi University)

Abstract

While most offshoring literature focus on the effects on relative wages, other implications do not receive the necessary attention. This paper investigates effects on the industries’ skill ratio. It sum-marizes the empirical literature, discusses theoretical findings, and provides first empirical evidence for Germany. As results show, effects are mainly driven by the industry where offshoring takes place. In high skill intensive industries, the high skill labor ratio increases (vice versa for low skill intensive industries). Since this result is in line with other empirical findings but seems to contradict with theory, the paper additionally discusses possible explanations.

Suggested Citation

  • Daniel Horgos & Lucia Tajoli, 2010. "How Offshoring Can Affect the Industries’ Skill Composition," Development Working Papers 296, Centro Studi Luca d'Agliano, University of Milano.
  • Handle: RePEc:csl:devewp:296
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    More about this item

    Keywords

    o shoring; labor market implications; skill ratio; skill composition;
    All these keywords.

    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure

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