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The governance of offshoring and its effects at home The role of codetermination in the international organization of German firms

Author Info

Listed author(s):
  • Alessandro Bramucci

    ()

    (Department of Economics, Society & Politics, Università di Urbino "Carlo Bo")

  • Antonello Zanfei

    ()

    (Department of Economics, Society & Politics, Università di Urbino "Carlo Bo")

Abstract

This paper focuses on the links between labor market institutions and offshoring, with specific reference to the role of codetermination in shaping the international operations of German firms. We use case studies to illustrate how works councils deal with three important aspects of offshoring processes: the timeliness of information they receive from the management, the negotiation of compensation mechanisms and the design of alternative strategies. While we found no evidence of works councils impeding offshoring, there are elements to suggest that they may influence the way such decisions are taken, and moderate their effects on employment in the home country.

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File URL: http://www.econ.uniurb.it/RePEc/urb/wpaper/WP_13_09.pdf
File Function: First version, 2013
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Paper provided by University of Urbino Carlo Bo, Department of Economics, Society & Politics - Scientific Committee - L. Stefanini & G. Travaglini in its series Working Papers with number 1309.

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Length: 37 pages
Date of creation: 2013
Date of revision: 2013
Handle: RePEc:urb:wpaper:13_09
Contact details of provider: Web page: http://www.econ.uniurb.it/

More information through EDIRC

Keywords: Offshoring; Labor market institutions; Codetermination.;

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Find related papers by JEL classification:
  • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
  • J53 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Labor-Management Relations; Industrial Jurisprudence
  • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure

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  1. Uwe Jirjahn, 2011. "Ökonomische Wirkungen der Mitbestimmung in Deutschland: Ein Update," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 131(1), pages 3-57.
  2. Feenstra, Robert C & Hanson, Gordon H, 1996. "Globalization, Outsourcing, and Wage Inequality," American Economic Review, American Economic Association, vol. 86(2), pages 240-245, May.
  3. Addison, John T. & Bellmann, Lutz & Pahnke, André & Teixeira, Paulino, 2008. "A Note on the Determinants and Consequences of Outsourcing Using German Data," IZA Discussion Papers 3608, Institute for the Study of Labor (IZA).
  4. Ingo Geishecker & Holger Görg, 2008. "Winners and losers: a micro-level analysis of international outsourcing and wages," Canadian Journal of Economics, Canadian Economics Association, vol. 41(1), pages 243-270, February.
  5. Mary Amiti & Shang-Jin Wei, 2005. "Fear of service outsourcing: is it justified?," Economic Policy, CEPR;CES;MSH, vol. 20(42), pages 308-347, 04.
  6. Hijzen, Alexander & Swaim, Paul, 2010. "Offshoring, labour market institutions and the elasticity of labour demand," European Economic Review, Elsevier, vol. 54(8), pages 1016-1034, November.
  7. Andrei A. Levchenko, 2007. "Institutional Quality and International Trade," Review of Economic Studies, Oxford University Press, vol. 74(3), pages 791-819.
  8. Bernhard Dachs & Bernd Ebersberger & Steffen Kinkel & Oliver Som, 2015. "The effects of production offshoring on R&D and innovation in the home country," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 42(1), pages 9-31, March.
  9. Joachim Wagner, 2011. "Offshoring and firm performance: self-selection, effects on performance, or both?," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 147(2), pages 217-247, June.
  10. Massimiliano Mazzanti & Sandro Montresor & Paolo Pini, 2009. "The General Profile of the Outsourcing Firm: Evidence for a Local Production System of Emilia Romagna," Chapters,in: Corporate Governance, Organization and the Firm, chapter 8 Edward Elgar Publishing.
  11. John T. Addison & Thorsten Schank & Claus Schnabel & Joachim Wagner, 2007. "Do Works Councils Inhibit Investment?," ILR Review, Cornell University, ILR School, vol. 60(2), pages 187-203, January.
  12. Mary Amiti & Shang-Jin Wei, 2005. "Service Offshoring, Productivity, and Employment; Evidence from the United States," IMF Working Papers 05/238, International Monetary Fund.
  13. Alan S. Blinder & Alan B. Krueger, 2013. "Alternative Measures of Offshorability: A Survey Approach," Journal of Labor Economics, University of Chicago Press, vol. 31(S1), pages 97-128.
  14. Marianna Belloc, 2006. "Institutions and International Trade: A Reconsideration of Comparative Advantage," Journal of Economic Surveys, Wiley Blackwell, vol. 20(1), pages 3-26, 02.
  15. Davide Castellani & Maria Mancusi & Grazia Santangelo & Antonello Zanfei, 2015. "Exploring the links between offshoring and innovation," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 42(1), pages 1-7, March.
  16. Martin Behrens & Juergen Kaedtler, 2008. "Betriebliche Restrukturierung und Partizipation. Wie viel Teilhabe erlauben unterschiedliche Rationalisierungsansaetze?," Industrielle Beziehungen - Zeitschrift fuer Arbeit, Organisation und Management - The German Journal of Industrial Relations, Rainer Hampp Verlag, vol. 15(1), pages 76-100.
  17. Addison, John T. & Bellmann, Lutz & Pahnke, André & Teixeira, Paulino, 2011. "A research note on the determinants and consequences of outsourcing using German data," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 44(3), pages 231-244.
  18. Castellani, Davide & Mariotti, Ilaria & Piscitello, Lucia, 2008. "The impact of outward investments on parent company's employment and skill composition: Evidence from the Italian case," Structural Change and Economic Dynamics, Elsevier, vol. 19(1), pages 81-94, March.
  19. Massimiliano Mazzanti & Sandro Montresor & Paolo Pini, 2008. "Outsourcing, Delocalization and Firm Organization: Transaction Costs vs. Industrial Relations in a Local Production System of Emilia-Romagna," DRUID Working Papers 08-08, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
  20. Helg, Rodolfo & Tajoli, Lucia, 2005. "Patterns of international fragmentation of production and the relative demand for labor," The North American Journal of Economics and Finance, Elsevier, vol. 16(2), pages 233-254, August.
  21. Ahlers, Elke & Oez, Fikret & Ziegler, Astrid, 2007. "Company Relocation: The Consequences for Employees - An Analysis of the WSI Works Council Survey," WSI Working Papers 151, The Institute of Economic and Social Research (WSI), Hans-Böckler-Foundation.
  22. Page, Rebecca, 2011. "Co-determination in Germany - a beginners' guide. 5. überarbeitete Auflage," Arbeitspapiere 33, Hans-Böckler-Stiftung, Düsseldorf.
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