IDEAS home Printed from https://ideas.repec.org/p/wii/wpaper/56.html
   My bibliography  Save this paper

Trade Integration, Outsourcing and Employment in Austria: A Decomposition Approach

Author

Listed:
  • Wolfgang Koller
  • Robert Stehrer

    (The Vienna Institute for International Economic Studies, wiiw)

Abstract

In this paper we study the employment effects of changes in the levels and patterns of trade integration and outsourcing in the Austrian economy over the periods 1995-2000 and 2000-2005. Based on an input-output framework, we apply a hierarchical decomposition analysis to disentangle the employment effects of changes in labour productivity, technical input coefficients and final demand components. Outsourcing is modelled as changes in the shares of domestically produced intermediates. For this some further details can be derived by distinguishing between intermediate imports according to educational intensities of the imported intermediate products. A similar decomposition of the final demand vector allows then to draw conclusions on the employment effects of overall trade integration over this period. We further calculate the employment effects, distinguishing three employment groups by educational attainment levels. The results suggest that the overall employment effect of trade integration has been positive in general. On top of that we do not find that the unskilled workers are hurt more than the other two skill groups. Further we find a distinct pattern of employment effects in the two periods considered In the period 1995-2000 we observe relatively strong positive employment effects in the production of high skill intensive products and negligible effects in the production of low skill intensive products. However, this pattern changed in the period 2000-2005 where strong positive employment effects are found in the latter but even negative employment effects in the production of high skill intensive commodities.

Suggested Citation

  • Wolfgang Koller & Robert Stehrer, 2009. "Trade Integration, Outsourcing and Employment in Austria: A Decomposition Approach," wiiw Working Papers 56, The Vienna Institute for International Economic Studies, wiiw.
    • Handle: RePEc:wii:wpaper:56
    as

    Download full text from publisher

    File URL: https://wiiw.ac.at/trade-integration-outsourcing-and-employment-in-austria-a-decomposition-approach-dlp-1972.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Skolka, Jiri, 1989. "Input-output structural decomposition analysis for Austria," Journal of Policy Modeling, Elsevier, vol. 11(1), pages 45-66.
    2. Wolfgang Koller & Robert Stehrer, 2010. "Trade Integration, Outsourcing And Employment In Austria: A Decomposition Approach," Economic Systems Research, Taylor & Francis Journals, vol. 22(3), pages 237-261.
    3. Robert C. Feenstra, 2010. "Offshoring in the Global Economy: Microeconomic Structure and Macroeconomic Implications," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262013835, December.
    4. Brian Wixted & Norihiko Yamano & Colin Webb, 2006. "Input-Output Analysis in an Increasingly Globalised World: Applications of OECD's Harmonised International Tables," OECD Science, Technology and Industry Working Papers 2006/7, OECD Publishing.
    5. Michael Peneder, 2007. "A sectoral taxonomy of educational intensity," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 34(3), pages 189-212, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Monarch, Ryan & Park, Jooyoun & Sivadasan, Jagadeesh, 2017. "Domestic gains from offshoring? Evidence from TAA-linked U.S. microdata," Journal of International Economics, Elsevier, vol. 105(C), pages 150-173.
    2. Mikuláš Luptáèik & Bernhard Mahlberg, 2012. "Efficiency change over time in a multisectoral economic system," Department of Economic Policy Working Paper Series 001, Department of Economic Policy, Faculty of National Economy, University of Economics in Bratislava.
    3. Hong, Jae Pyo & Byun, Jeong Eun & Kim, Pang Ryong, 2016. "Structural changes and growth factors of the ICT industry in Korea: 1995–2009," Telecommunications Policy, Elsevier, vol. 40(5), pages 502-513.
    4. Yan, Yunfeng & Li, Xiyuan & Wang, Ran & Zhao, Zhongxiu & Jiao, Aodong, 2023. "Decomposing the carbon footprints of multinational enterprises along global value chains," Structural Change and Economic Dynamics, Elsevier, vol. 66(C), pages 13-28.
    5. Arne J. Nagengast & Robert Stehrer, 2016. "The Great Collapse in Value Added Trade," Review of International Economics, Wiley Blackwell, vol. 24(2), pages 392-421, May.
    6. Wolfgang Koller & Robert Stehrer, 2010. "Trade Integration, Outsourcing And Employment In Austria: A Decomposition Approach," Economic Systems Research, Taylor & Francis Journals, vol. 22(3), pages 237-261.
    7. Mahlberg, Bernhard & Luptacik, Mikulas, 2014. "Eco-efficiency and eco-productivity change over time in a multisectoral economic system," European Journal of Operational Research, Elsevier, vol. 234(3), pages 885-897.
    8. Kirill Muradov, 2021. "Structural decomposition analysis with disaggregate factors within the Leontief inverse," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 10(1), pages 1-17, December.
    9. Liboreiro, Pablo R. & Fernández, Rafael & García, Clara, 2021. "The drivers of deindustrialization in advanced economies: A hierarchical structural decomposition analysis," Structural Change and Economic Dynamics, Elsevier, vol. 58(C), pages 138-152.
    10. Croner, Daniel & Koller, Wolfgang & Mahlberg, Bernhard, 2018. "Economic drivers of greenhouse gas-emissions in small open economies: A hierarchical structural decomposition analysis," MPRA Paper 85755, University Library of Munich, Germany.
    11. Jooyoun Park, 2018. "The Cleansing Effect of Offshoring in an Analysis of Employment," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 44(2), pages 242-272, April.
    12. Yang Lianling & Yang Cuihong, 2017. "Changes in domestic value added in China’s exports: a structural decomposition analysis approach," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 6(1), pages 1-12, December.
    13. Semih Akcomak & Henri de Groot & Stefan Groot, 2013. "The impact of trade, offshoring and multinationals on job loss and job finding," CPB Discussion Paper 252, CPB Netherlands Bureau for Economic Policy Analysis.
    14. Semih Akcomak & Henri de Groot & Stefan Groot, 2013. "The impact of trade, offshoring and multinationals on job loss and job finding," CPB Discussion Paper 252.rdf, CPB Netherlands Bureau for Economic Policy Analysis.
    15. Fujii Gambero, Gerardo & Cervantes M., Rosario & Fabián Rojas, Ana Sofía, 2016. "The labour content of Mexican manufactures, 2008 and 2012," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), August.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hong, Jae Pyo & Byun, Jeong Eun & Kim, Pang Ryong, 2016. "Structural changes and growth factors of the ICT industry in Korea: 1995–2009," Telecommunications Policy, Elsevier, vol. 40(5), pages 502-513.
    2. Monarch, Ryan & Park, Jooyoun & Sivadasan, Jagadeesh, 2017. "Domestic gains from offshoring? Evidence from TAA-linked U.S. microdata," Journal of International Economics, Elsevier, vol. 105(C), pages 150-173.
    3. Monarch, Ryan & Park, Jooyoun & Sivadasan, Jagadeesh, 2013. "Gains from Offshoring? Evidence from U.S. Microdata," Working Papers 635, Research Seminar in International Economics, University of Michigan.
    4. W. Koller & Robert Stehrer, 2008. "Outsourcing and Employment: A Decomposition Approach," FIW Research Reports series I-018, FIW.
    5. Chiquiar, Daniel & Covarrubias, Enrique & Salcedo, Alejandrina, 2016. "Labor market consequences of trade openness and competition in foreign markets," Conference papers 332760, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    6. Danny Leung & Oana Secrieru, 2012. "Real-Financial Linkages In The Canadian Economy: An Input--Output Approach," Economic Systems Research, Taylor & Francis Journals, vol. 24(2), pages 195-223, September.
    7. Sugata Marjit & Suryaprakash Mishra & Sandip Sarkar & Lei Yang, 2019. "Trade, Inequality and Distribution-neutral Fiscal Policy," Foreign Trade Review, , vol. 54(2), pages 61-74, May.
    8. Alexandre Messa, 2012. "Structural Change in The Brazilian Economy in The 2000s," Discussion Papers 1770, Instituto de Pesquisa Econômica Aplicada - IPEA.
    9. Neil Foster-McGregor & Robert Stehrer & Gaaitzen Vries, 2013. "Offshoring and the skill structure of labour demand," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 149(4), pages 631-662, December.
    10. Jürgen Janger & Andreas Reinstaller, 2009. "Innovation: Anreize, Inputfaktoren und Output im Spiegel der österreichischen Wirtschaftsstruktur," WIFO Monatsberichte (monthly reports), WIFO, vol. 82(8), pages 603-617, August.
    11. Blanas, Sotiris, 2012. "Intra-firm trade and employment in US manufacturing," Kiel Advanced Studies Working Papers 458, Kiel Institute for the World Economy (IfW Kiel).
    12. Kozo Kiyota & Sawako Maruyama, 2018. "On the Demand for Female Workers in Japan: The Role of ICT and Offshoring," Asian Economic Papers, MIT Press, vol. 17(2), pages 25-46, Summer.
    13. Giovanni Scarano, 2013. "Capital accumulation and technical conditions along sustainable growth paths," Departmental Working Papers of Economics - University 'Roma Tre' 0182, Department of Economics - University Roma Tre.
    14. Wiedmann, Thomas, 2009. "A first empirical comparison of energy Footprints embodied in trade -- MRIO versus PLUM," Ecological Economics, Elsevier, vol. 68(7), pages 1975-1990, May.
    15. Simona Iammarino, 2018. "FDI and regional development policy," Journal of International Business Policy, Palgrave Macmillan, vol. 1(3), pages 157-183, December.
    16. Sadao, Nishimura, 2010. "Towards Analysis of Vertical Structure of Industries: a method and its application to U.S. industries," MPRA Paper 27464, University Library of Munich, Germany.
    17. Sugata Marjit, 2016. "Anti-Trade Agitation and Distribution-Neutral Tax Policy- An Elementary Framework," Discussion Papers 2016-14, University of Nottingham, GEP.
    18. Marta C. N. Simões & Adelaide Duarte, 2013. "Human Capital and Growth in a Services Economy: the Case of Portugal," GEMF Working Papers 2013-21, GEMF, Faculty of Economics, University of Coimbra.
    19. Denis Chetverikov & Bradley Larsen & Christopher Palmer, 2016. "IV Quantile Regression for Group‐Level Treatments, With an Application to the Distributional Effects of Trade," Econometrica, Econometric Society, vol. 84, pages 809-833, March.
    20. Orszaghova, Lucia & Savelin, Li & Schudel, Willem, 2013. "External competitiveness of EU candidate countries," Occasional Paper Series 141, European Central Bank.

    More about this item

    Keywords

    outsourcing; offshoring; employment effects; hierarchical decomposition; input-output modelling;
    All these keywords.

    JEL classification:

    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • D57 - Microeconomics - - General Equilibrium and Disequilibrium - - - Input-Output Tables and Analysis
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wii:wpaper:56. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Customer service (email available below). General contact details of provider: https://edirc.repec.org/data/wiiwwat.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.