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Outsourcing, Occupational Restructuring, and Employee Well-Being: Is There a Silver Lining?


  • Böckerman, Petri

    () (Labour Institute for Economic Research)

  • Maliranta, Mika

    () (ETLA - The Research Institute of the Finnish Economy)


This paper examines the relationship between outsourcing and various aspects of employee well-being by devoting special attention to the role of occupational restructuring as a conveying mechanism. Using linked employer-employee data, we find that offshoring involves job destruction, especially when the destination is a low-wage country. In such circumstances, staying employees' job satisfaction is reduced. However, the relationship between outsourcing and employee well-being is not entirely negative. Our evidence also shows that offshoring to high-wage countries stimulates the vertical mobility of employees in affected firms in a manner that improves perceived well-being, particularly in terms of better prospects for promotion.

Suggested Citation

  • Böckerman, Petri & Maliranta, Mika, 2013. "Outsourcing, Occupational Restructuring, and Employee Well-Being: Is There a Silver Lining?," IZA Discussion Papers 7399, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp7399

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    Cited by:

    1. Fonseca, Tiago & Lima, Francisco & Pereira, Sonia C., 2018. "Understanding productivity dynamics: A task taxonomy approach," Research Policy, Elsevier, vol. 47(1), pages 289-304.
    2. Pekkala Kerr, Sari & Maczulskij, Terhi & Maliranta, Mika, 2016. "Within and Between Firm Trends in Job Polarization: Role of Globalization and Technology," ETLA Working Papers 41, The Research Institute of the Finnish Economy.
    3. Böckerman, Petri & Kauhanen, Antti & Maliranta, Mika, 2012. "ICT and occupation-based measures of organisational change: Firm and employee outcomes," MPRA Paper 43302, University Library of Munich, Germany.

    More about this item


    subjective well-being; working conditions; downsizing; offshoring; outsourcing; globalization; job satisfaction;

    JEL classification:

    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

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