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Firm-level effects of offshoring of materials and services on relative labor demand

Author

Listed:
  • Linda Andersson

    (Örebro University)

  • Patrik Karpaty

    (Örebro University)

  • Selen Savsin

    (Örebro University)

Abstract

Based on firm-level data over the period 1997–2002 for the Swedish manufacturing sector the objective of this paper is to analyze relative labor demand effects due to offshoring, separating between materials and services offshoring and also geographical location of trade partner. Overall, our results give no support to the fears that offshoring of materials or services lead to out-location of high-skilled activity in Swedish firms. Rather, this paper finds evidence that the aggregate effects from offshoring lead to increasing relative demand of high-skilled labor, mainly due to services offshoring to middle income countries.

Suggested Citation

  • Linda Andersson & Patrik Karpaty & Selen Savsin, 2016. "Firm-level effects of offshoring of materials and services on relative labor demand," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 152(2), pages 321-350, May.
    • Handle: RePEc:spr:weltar:v:152:y:2016:i:2:d:10.1007_s10290-015-0243-8
    DOI: 10.1007/s10290-015-0243-8
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    Cited by:

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    2. Zouheir El-Sahli & Joakim Gullstrand & Karin Olofsdotter, 2022. "The external effects of offshoring on job security in SMEs," Small Business Economics, Springer, vol. 59(4), pages 1613-1640, December.
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    5. Carmine Ornaghi & Ilke Van Beveren & Stijn Vanormelingen, 2021. "The impact of service and goods offshoring on employment: Firm‐level evidence," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 54(2), pages 677-711, May.
    6. Anmar Pretorius & Carli Bezuidenhout & Marianne Matthee & Derick Blaauw, 2019. "Offshoring within South African manufacturing firms: An analysis of the labour market effects," WIDER Working Paper Series wp-2019-75, World Institute for Development Economic Research (UNU-WIDER).
    7. Endoh, Masahiro, 2021. "Offshoring and working hours adjustments in a within-firm labor market," Journal of the Japanese and International Economies, Elsevier, vol. 60(C).
    8. Andrea Ariu & Katariina Nilsson Hakkala & J. Bradford Jensen & Saara Tamminen, 2019. "Service Imports, Workforce Composition, and Firm Performance: Evidence from Finnish Microdata," CESifo Working Paper Series 7858, CESifo.
    9. Linda Andersson & Patrik Karpaty & Selen Savsin, 2017. "Labour Demand, Offshoring and Inshoring: Evidence from Swedish Firm-level Data," The World Economy, Wiley Blackwell, vol. 40(2), pages 240-274, February.

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    More about this item

    Keywords

    Offshoring; Firm-level data; Relative employment; Translog cost function;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions

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