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Offshoring, employment and wages

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  • Bramucci, Alessandro

Abstract

This paper reviews the debate on the economic effect of the international fragmentation of production, also known as "offshoring", and provides a preliminary investigation of the impact of intermediate imported inputs on employment and wages in five European countries (Germany, Spain, France, Italy, the United Kingdom). Data are obtained from the Sectoral Innovation Database (SID) of the University of Urbino, a large database that merges statistical material from various sources (LFS; CIS; WIOD). The first part of this work provides a review of the empirical literature that discusses the economic effects of offshoring on domestic labor demand and wages. The second section of the paper presents offshoring trends and discusses the results of the econometric analysis. Results suggest that offshoring has a general negative impact on employment and wages although more careful examination reveals that high-tech offshoring has a positive effect on wages of medium- and high-skilled workers.

Suggested Citation

  • Bramucci, Alessandro, 2016. "Offshoring, employment and wages," IPE Working Papers 71/2016, Berlin School of Economics and Law, Institute for International Political Economy (IPE).
    • Handle: RePEc:zbw:ipewps:712016
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    References listed on IDEAS

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    Cited by:

    1. Valeria Cirillo & Mario Pianta & Leopoldo Nascia, 2015. "The Dynamics of Skills: Technology and Business Cycles," LEM Papers Series 2015/30, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    2. Piatanesi, Benedetta & Arauzo Carod, Josep Maria, 2019. "An Analysis about reverse offshoring," Working Papers 2072/376030, Universitat Rovira i Virgili, Department of Economics.
    3. Bramucci, Alessandro & Cirillo, Valeria & Evangelista, Rinaldo & Guarascio, Dario, 2021. "Offshoring, industry heterogeneity and employment11This paper is the research outcome of two projects: the ISIGrowth project on Innovation-fuelled, Sustainable, Inclusive Growth funded by the European," Structural Change and Economic Dynamics, Elsevier, vol. 56(C), pages 400-411.

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    More about this item

    Keywords

    Offshoring; Innovation; Employment; Wages;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade
    • F2 - International Economics - - International Factor Movements and International Business

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    This paper has been announced in the following NEP Reports:

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