Job losses, outsourcing and relocation, empirical evidence using microdata
Using microdata, we analyse the determinants of firm relocation and conventional outsourcing decisions as a way to reduce employment. The results for a sample of 32 countries show the relevance of factors not considered previously in the literature. Firms that are below average in quality or innovation have a higher propensity to externalise part of their production through outsourcing, while lower relative profitability and longer time to market for new products each imply a higher probability of relocation.
|Date of creation:||Dec 2006|
|Date of revision:||Dec 2006|
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