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Offshore Outsourcing and Non-production Workers: Firm-level Relationships Disaggregated by Skills and Suppliers

Author

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  • Eiichi Tomiura
  • Banri Ito
  • Ryuhei Wakasugi

Abstract

Previous studies have established that offshoring firms employ more non-production workers. By using micro-data on Japanese firms, this paper disaggregates non-production workers. The share of skilled non-production workers tends to be high in offshoring firms but that of unskilled non-production workers is not. The share of non-production workers for the management of overseas activities tends to be high in FDI firms and in firms outsourcing to foreign suppliers, but not in Japanese firms outsourcing to offshore suppliers owned by other Japanese firms. These findings suggest that offshoring has different impacts on employment depending on suppliers and the worker's skill.
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Suggested Citation

  • Eiichi Tomiura & Banri Ito & Ryuhei Wakasugi, 2013. "Offshore Outsourcing and Non-production Workers: Firm-level Relationships Disaggregated by Skills and Suppliers," The World Economy, Wiley Blackwell, vol. 36(2), pages 180-193, February.
    • Handle: RePEc:bla:worlde:v:36:y:2013:i:2:p:180-193
    DOI: 10.1111/twec.2013.36.issue-2
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    Citations

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    Cited by:

    1. João Amador & Sónia Cabral, 2014. "Global Value Chains: Surveying Drivers, Measures and Impacts," Working Papers w201403, Banco de Portugal, Economics and Research Department.
    2. Amador, João & Cabral, Sónia, 2014. "Global value chains: surveying drivers and measures," Working Paper Series 1739, European Central Bank.
    3. Chen, Qifei & Shen, Yanzhi, 2021. "The impacts of offshore and onshore outsourcing on China's upgrading in global value chains: Evidence from its manufacturing and service sectors," Structural Change and Economic Dynamics, Elsevier, vol. 59(C), pages 263-280.
    4. Alexis Grimm & Mina Kim, 2016. "FDI and the task content of domestic employment for U.S. multinationals," Globalization Institute Working Papers 286, Federal Reserve Bank of Dallas.

    More about this item

    JEL classification:

    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • L24 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Contracting Out; Joint Ventures

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