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Does Offshoring of Materials and Business Services Affect Employment? Evidence from a Small Open Economy

  • Bernhard Michel
  • François Rycx

The fear of massive job losses has prompted a fast-growing literature on offshoring and its impact on employment in advanced economies. This paper examines the situation for Belgium. It improves the offshoring intensity measure by computing a volume measure of the share of imported intermediates in output and it is among the first to address both materials and business services offshoring to high-wage and low-wage countries. Estimations of static and dynamic industry-level labour demand equations augmented by offshoring intensities do not reveal a significant impact of either materials or business services offshoring on total employment for Belgium between 1995 and 2003.

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Paper provided by ULB -- Universite Libre de Bruxelles in its series Working Papers CEB with number 09-018.RS.

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Length: 41 p.
Date of creation: 2009
Date of revision:
Publication status: Published by:
Handle: RePEc:sol:wpaper:09-018
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  16. 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.
  17. Alexander Hijzen, 2005. "A Bird’s Eye View of International Outsourcing: Data, Measurement and Labour Demand Effects," Economie Internationale, CEPII research center, issue 104, pages 45-63.
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