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Offshoring, Employment and Wages

Author

Listed:
  • Alessandro Bramucci

    () (Ph.D. at University of Urbino, Department of Economics, Society, Politics, Università di Urbino "Carlo Bo")

Abstract

This paper reviews the debate on the economic effect of the international fragmentation of production also known as “offshoring” and provides a preliminary investigation on the impact of imports of intermediate products on labor demand and wages in five European countries (Germany, Spain, France, Italy, United Kingdom). Data are obtained from the Sectoral Innovation Database (SID) of the University of Urbino, a large database that merges statistical material from various sources (LFS; CIS; OECD STAN; WIOD). The first part of this work is devoted to a discussion of the concepts, the economic effects of offshoring and the debate that followed. The second section presents offshoring trends and discusses the results of a preliminary econometric analysis on the offshoring effect on wages and employment. Results suggest that offshoring has a general negative impact on labour demand and wages although at a more careful examination high-tech offshoring appear to have a positive influence on wages of medium and high-skilled workers.

Suggested Citation

  • Alessandro Bramucci, 2015. "Offshoring, Employment and Wages," Working Papers 1506, University of Urbino Carlo Bo, Department of Economics, Society & Politics - Scientific Committee - L. Stefanini & G. Travaglini, revised 2015.
  • Handle: RePEc:urb:wpaper:15_06
    as

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    File URL: http://www.econ.uniurb.it/RePEc/urb/wpaper/WP_15_06.pdf
    File Function: First version, 2015
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    References listed on IDEAS

    as
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    5. Neil Foster-McGregor & Johannes Poeschl & Robert Stehrer, 2016. "Offshoring and the Elasticity of Labour Demand," Open Economies Review, Springer, vol. 27(3), pages 515-540, July.
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    More about this item

    Keywords

    Offshoring; International Outsourcing; Innovation; Employment; Wages;

    JEL classification:

    • F1 - International Economics - - Trade
    • F2 - International Economics - - International Factor Movements and International Business

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