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Outsourcing, occupational restructuring, and employee well-being: Is there a silver lining?

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  • Böckerman, Petri
  • Maliranta, Mika

Abstract

This paper explores the effects of outsourcing on employee well-being through the use of the Finnish linked employer-employee data. The direct negative effect of outsourcing is attributable to greater job destruction and worker outflow. In terms of perceived well-being, the winners in international outsourcing are those who are capable of performing interactive tasks (i.e., managers, professionals and experts), especially when offshoring involves closer connections to other developed countries.

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  • Böckerman, Petri & Maliranta, Mika, 2012. "Outsourcing, occupational restructuring, and employee well-being: Is there a silver lining?," Discussion Papers 1271, The Research Institute of the Finnish Economy.
    • Handle: RePEc:rif:dpaper:1271
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    2. Fonseca, Tiago & Lima, Francisco & Pereira, Sonia C., 2018. "Understanding productivity dynamics: A task taxonomy approach," Research Policy, Elsevier, vol. 47(1), pages 289-304.
    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.
    4. Merja Kauhanen, 2012. "The impact of the near superior’s management on worker wellbeing, retirement intentions, and establishment productivity," Working Papers 279, Työn ja talouden tutkimus LABORE, The Labour Institute for Economic Research LABORE.
    5. Sari Kerr & Terhi Maczulskij & Mika Maliranta, 2020. "Within and between firm trends in job polarization: the roles of globalization and technology [The skill complementarity of broadband internet]," Journal of Economic Geography, Oxford University Press, vol. 20(4), pages 1003-1039.
    6. Liu, Runjuan & Trefler, Daniel, 2019. "A sorted tale of globalization: White collar jobs and the rise of service offshoring," Journal of International Economics, Elsevier, vol. 118(C), pages 105-122.
    7. Barbara Dluhosch & Daniel Horgos, 2019. "International Competition Intensified: Job Satisfaction Sacrificed?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 143(2), pages 479-504, June.
    8. Colantone, Italo & Crinò, Rosario & Ogliari, Laura, 2019. "Globalization and mental distress," Journal of International Economics, Elsevier, vol. 119(C), pages 181-207.

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    More about this item

    Keywords

    globalization; outsourcing; offshoring; working conditions; job satisfaction; subjective well-being;
    All these keywords.

    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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