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A Note on the Determinants and Consequences of Outsourcing Using German Data

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Author Info
Addison, John T. () (University of South Carolina)
Bellmann, Lutz () (IAB, Nürnberg)
Pahnke, André () (IAB, Nürnberg)
Teixeira, Paulino () (University of Coimbra)

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Abstract

Using German data from the Institute for Employment Research Establishment Panel, this paper constructs two main measures of outsourcing and examines their determinants and consequences for employment. There are some commonalities in the correlates of the two measures of outsourcing, as well as agreement on the absence of adverse employment effects across all industries. For one specification, however, some negative effects are reported for manufacturing industry, balanced by positive effects for the services sector for another. But there are no indications of survival bias. This is because the association between outsourcing and plant closings is predominantly negative, albeit poorly determined.

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Publisher Info
Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 3608.

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Length: 22 pages
Date of creation: Jul 2008
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Handle: RePEc:iza:izadps:dp3608

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Related research
Keywords: outsourcing organizational change employment change plant closings value added

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Find related papers by JEL classification:
F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand

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  1. Holger Görg & Aoife Hanley & Eric Strobl, 2008. "Productivity effects of international outsourcing: evidence from plant-level data," Canadian Journal of Economics, Canadian Economics Association, vol. 41(2), pages 670-688, May. [Downloadable!] (restricted)
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  2. Holger Görg & Aoife Hanley, 2004. "Does Outsourcing Increase Profitability?," The Economic and Social Review, Economic and Social Studies, vol. 35(3), pages 267-288. [Downloadable!]
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  3. Gorg, Holger & Hanley, Aoife, 2005. "Labour demand effects of international outsourcing: Evidence from plant-level data," International Review of Economics & Finance, Elsevier, vol. 14(3), pages 365-376. [Downloadable!] (restricted)
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