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Firm Level Effects of Offshoring of Goods and Services on Relative Labor Demand

Author

Listed:
  • Andersson, Linda

    (Department of Business, Economics, Statistics and Informatics)

  • Karpaty, Patik

    (Department of Business, Economics, Statistics and Informatics)

Abstract

Based on firm level data for the Swedish manufacturing sector the objective of this paper is to analyze relative labor demand effects due to offshoring. Data allow us to distinguish between goods and service offshoring and from which country Swedish firms source their inputs. Overall, our results give no support to the fears that offshoring of goods or services lead to out-location of high-skilled activity in Swedish firms. Rather, this paper finds robust evidence that the aggregate effects from offshoring lead to increasing relative demand of high-skilled labor, mainly due to service offshoring.

Suggested Citation

  • Andersson, Linda & Karpaty, Patik, 2012. "Firm Level Effects of Offshoring of Goods and Services on Relative Labor Demand," Working Papers 2013:2, Örebro University, School of Business.
    • Handle: RePEc:hhs:oruesi:2013_002
    Note: This is an extensively revised version of working paper No. 2007:5
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    File URL: https://www.oru.se/globalassets/oru-sv/institutioner/hh/workingpapers/workingpapers2013/wp-2-2013.pdf
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    References listed on IDEAS

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    1. Akhmetova, Zhanar & Ferguson, Shon, 2015. "Offshoring, Total Factor Productivity and Skill-Biased Technological Change," Working Paper Series 1074, Research Institute of Industrial Economics.

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    More about this item

    Keywords

    Offshoring; firm level data; relative employment; translog cost function;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions

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