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International outsourcing and labour demand: Evidence from Finnish firm-level data

  • Böckerman, Petri
  • Riihimäki, Elisa

We examine the employment effects of international outsourcing by using firm-level data from the Finnish manufacturing sector. A major advantage of our data is that outsourcing is defined based on firms’ actual use of intermediate inputs from foreign trade statistics. The estimates show that intensive outsourcing (more than two times the 2-digit industry median) does not reduce employment nor have an effect on the share of low-skilled workers.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 16903.

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Date of creation: 21 Aug 2009
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Handle: RePEc:pra:mprapa:16903
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  1. Maliranta, Mika & Rouvinen, Petri & Airaksinen, Aarno, 2008. "IT Outsourcing in Finnish Business," Discussion Papers 1140, The Research Institute of the Finnish Economy.
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  11. David E. Wildasin, 2000. "Factor Mobility and Fiscal Policy in the EU: Policy Issues and Analytical Approaches," CESifo Working Paper Series 344, CESifo Group Munich.
  12. Ingo Geishecker, 2006. "Does Outsourcing to Central and Eastern Europe Really Threaten Manual Workers' Jobs in Germany?," The World Economy, Wiley Blackwell, vol. 29(5), pages 559-583, 05.
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  14. Hartmut Egger & Peter Egger, 2000. "Outsourcing and skill-specific employment in a small economy: Austria and the fall of the Iron Curtain," Economics working papers 2000-24, Department of Economics, Johannes Kepler University Linz, Austria.
  15. Marianne Bertrand, 2004. "From the Invisible Handshake to the Invisible Hand? How Import Competition Changes the Employment Relationship," Journal of Labor Economics, University of Chicago Press, vol. 22(4), pages 723-766, October.
  16. Egger, Peter & Pfaffermayr, Michael & Weber, Andrea, 2003. "Sectoral Adjustment of Employment: The Impact of Outsourcing and Trade at the Micro Level," Economics Series 145, Institute for Advanced Studies.
  17. Becker Sascha O & Muendler Marc-Andreas, 2008. "The Effect of FDI on Job Security," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 8(1), pages 1-46, April.
  18. Tito Boeri & Giuseppe Nicoletti & Stefano Scarpetta, . "Regulation and Labour Market Performance," Working Papers 158, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
  19. Ekholm, Karolina & Hakkala, Katariina, 2006. "The Effect of Offshoring on Labour Demand: Evidence from Sweden," CEPR Discussion Papers 5648, C.E.P.R. Discussion Papers.
  20. George J. Borjas & Valerie A. Ramey, 1995. "Foreign Competition, Market Power, and Wage Inequality," The Quarterly Journal of Economics, Oxford University Press, vol. 110(4), pages 1075-1110.
  21. Driffill, John & Meschi, Meloria & Ulph, Alistair Mitchell, 1998. "Product Market Integration and Wages: Evidence from a Cross-Section of Manufacturing Establishments in the United Kingdom," CEPR Discussion Papers 1818, C.E.P.R. Discussion Papers.
  22. Chiara Broccolini & Alessia Lo Turco & Andrea F. Presbitero & Stefano Staffolani, 2008. "Individual Earnings, International Outsourcing and Technological Change," Development Working Papers 242, Centro Studi Luca d'Agliano, University of Milano.
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