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The Effect of Offshoring on Labor Demand: Evidence from Sweden

Author

Listed:
  • Ekholm, Karolina

    (Stockholm School of Economics)

  • Hakkala, Katariina

    (The Research Institute of Industrial Economics)

Abstract

We analyze the effects of offshoring of intermediate input production on labor demand in Sweden, distinguishing between workers with different educational attainments. The econometric results using data for the 1995-2000 period indicate that offshoring -- in particular to low-income countries -- tends to shift labor demand away from workers with an intermediate level of education. Offshoring to high-income countries, which is the largest component of overall offshoring, does not have any statistically significant effect on the composition of labor demand.

Suggested Citation

  • Ekholm, Karolina & Hakkala, Katariina, 2005. "The Effect of Offshoring on Labor Demand: Evidence from Sweden," Working Paper Series 654, Research Institute of Industrial Economics.
    • Handle: RePEc:hhs:iuiwop:0654
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    References listed on IDEAS

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    1. Bob Anderton & Paul Brenton, 2014. "Outsourcing And Low-Skilled Workers In The Uk," World Scientific Book Chapters, in: INTERNATIONAL TRADE, DISTRIBUTION AND DEVELOPMENT Empirical Studies of Trade Policies, chapter 9, pages 185-203, World Scientific Publishing Co. Pte. Ltd..
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    More about this item

    Keywords

    Offshoring; Labor Demand; Translog Cost Function; Factor-Biased Technological Change;
    All these keywords.

    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions

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