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Working Paper 07-12 - Offshoring and the Skill Structure of Labour Demand in Belgium


  • Bart Hertveldt
  • Bernhard Klaus Michel


A major concern regarding the consequences of offshoring is about the labour market position of low?skilled workers. This paper provides evidence for Belgium that offshoring has had a negative impact on the employment share of low?skilled workers in the manufacturing sector between 1995 and 2007. The main contribution to the fall in the low?skilled employment share came from materials offshoring to Central and Eastern Europe (21%), followed by business services offshoring (8%). In manufacturing industries with a higher ICT capital intensity the impact of offshoring is smaller. For market services industries, no robust conclusions regarding the impact of offshoring on low?skilled employment could be drawn.

Suggested Citation

  • Bart Hertveldt & Bernhard Klaus Michel, 2012. "Working Paper 07-12 - Offshoring and the Skill Structure of Labour Demand in Belgium," Working Papers 1207, Federal Planning Bureau, Belgium.
  • Handle: RePEc:fpb:wpaper:1207

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    References listed on IDEAS

    1. Peretto, Pietro F, 1998. "Technological Change and Population Growth," Journal of Economic Growth, Springer, vol. 3(4), pages 283-311, December.
    2. Andrea Bassanini & Ekkehard Ernst, 2002. "Labour Market Institutions, Product Market Regulation, and Innovation: Cross-Country Evidence," OECD Economics Department Working Papers 316, OECD Publishing.
    3. Lokshin, Boris & Mohnen, Pierre, 2007. "Measuring the Effectiveness of R&D Tax Credits in the Netherlands," MERIT Working Papers 025, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    4. Åsa Johansson & Chistopher Heady & Jens Arnold & Bert Brys & Laura Vartia, 2008. "Taxation and Economic Growth," OECD Economics Department Working Papers 620, OECD Publishing.
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    Cited by:

    1. Henri Bogaert & Chantal Kegels, 2012. "Planning Paper 112 - Compétitivité de la Belgique - Défis et pistes de croissance
      [Planning Paper 112 - Concurrentievermogen van België - Uitdagingen en groeipistes]
      ," Planning Papers 112, Federal Planning Bureau, Belgium.
    2. Michel, Bernhard, 2013. "Does offshoring contribute to reducing domestic air emissions? Evidence from Belgian manufacturing," Ecological Economics, Elsevier, vol. 95(C), pages 73-82.

    More about this item

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions

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