IDEAS home Printed from https://ideas.repec.org/p/zbw/zewdip/10108.html
   My bibliography  Save this paper

IT outsourcing and employment growth at the firm level

Author

Listed:
  • Ohnemus, Jörg

Abstract

Outsourcing is widely associated with accompanied job losses in the outsourcing firm, at least in the short run. However, the medium and long run effects of outsourcing on employment growth might still be positive. This paper particularly focuses on IT outsourcing and its medium-term effects on employment growth. Therefore, a three year time period from 2003 to 2006 is analysed using German firm-level data and instrumental variable estimation. I find evidence that IT outsourcing has a positive effect on firms' employment growth rate. However, dividing the sample into manufacturing and service firms, a medium-term positive growth effect of IT outsourcing can only be observed for firms operating in the service sector.

Suggested Citation

  • Ohnemus, Jörg, 2010. "IT outsourcing and employment growth at the firm level," ZEW Discussion Papers 10-108, ZEW - Leibniz Centre for European Economic Research.
    • Handle: RePEc:zbw:zewdip:10108
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/44451/1/653926642.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Van Reenen, John, 1997. "Employment and Technological Innovation: Evidence from U.K. Manufacturing Firms," Journal of Labor Economics, University of Chicago Press, vol. 15(2), pages 255-284, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Irene Bertschek & Daniel Erdsiek & Manuel Trenz, 2017. "IT Outsourcing—A Source of Innovation? Microeconometric Evidence for Germany," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 38(7), pages 941-954, October.
    2. Muneeb Ahmad & Kashif Raza & Rana Naeem Shahid, 2012. "Causes of Increasing Demand of Employees Outsourcing and Its Impact on Pakistan Business," International Journal of Learning and Development, Macrothink Institute, vol. 2(3), pages 294-312, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Luigi Aldieri & Concetto Paolo Vinci, 2019. "Firm Size and Sustainable Innovation: A Theoretical and Empirical Analysis," Sustainability, MDPI, vol. 11(10), pages 1-9, May.
    2. Horst Feldmann, 2013. "Technological unemployment in industrial countries," Journal of Evolutionary Economics, Springer, vol. 23(5), pages 1099-1126, November.
    3. Garcia, Angel & Jaumandreu, Jordi & Rodriguez, Cesar, 2004. "Innovation and jobs: evidence from manufacturing firms," MPRA Paper 1204, University Library of Munich, Germany.
    4. Francesco Bogliacino & Marco Vivarelli, 2012. "The Job Creation Effect Of R&D Expenditures," Australian Economic Papers, Wiley Blackwell, vol. 51(2), pages 96-113, June.
    5. Miranowski, John A. & Monchuk, Daniel C., 2004. "Spatial Labor Markets and Technology Spillovers - Analysis from the US Midwest," Working Papers 18224, Iowa State University, Department of Economics.
    6. Di Cataldo, Marco & Rodríguez-Pose, Andrés, 2016. "What drives employment growth and social inclusion in EU regions," LSE Research Online Documents on Economics 68510, London School of Economics and Political Science, LSE Library.
    7. Kölling, Arnd, 1998. "Dynamische Arbeitsnachfrage und asymmetrisches Anpassungsverhalten in der Bundesrepublik Deutschland : eine Untersuchung mit Daten aus dem IAB-Betriebspanel (Dynamic labour demand and asymmetrical adj," Mitteilungen aus der Arbeitsmarkt- und Berufsforschung, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 31(4), pages 637-647.
    8. Jacques Mairesse, 2008. "Employment, innovation, and productivity: evidence from Italian microdata," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 17(4), pages 813-839, August.
    9. Grazia Cecere & Massimiliano Mazzanti, 2015. "Green jobs, innovation and environmentally oriented strategies in European SMEs," SEEDS Working Papers 2115, SEEDS, Sustainability Environmental Economics and Dynamics Studies, revised Dec 2015.
    10. Vivarelli, Marco, 2012. "Innovation, Employment and Skills in Advanced and Developing Countries: A Survey of the Literature," IZA Discussion Papers 6291, Institute of Labor Economics (IZA).
    11. Alex Coad & Rekha Rao, 2007. "The employment effects of innovation," Documents de travail du Centre d'Economie de la Sorbonne r07036, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
    12. Fabio D'Orlando, 2018. "Problems, solutions and new problems with the third wave of technological unemployment," Working Papers 2018-02, Universita' di Cassino, Dipartimento di Economia e Giurisprudenza.
    13. Mehmet Ugur & Sefa Awaworyi Churchill & Edna Solomon, 2018. "Technological Innovation And Employment In Derived Labour Demand Models: A Hierarchical Meta†Regression Analysis," Journal of Economic Surveys, Wiley Blackwell, vol. 32(1), pages 50-82, February.
    14. Pantea, Smaranda & Sabadash, Anna & Biagi, Federico, 2017. "Are ICT displacing workers in the short run? Evidence from seven European countries," Information Economics and Policy, Elsevier, vol. 39(C), pages 36-44.
    15. Francesco Bogliacino & Matteo Lucchese & Mario Pianta, 2011. "Job creation in business services:Innovation, Demand, Polarisation," Working Papers 1107, University of Urbino Carlo Bo, Department of Economics, Society & Politics - Scientific Committee - L. Stefanini & G. Travaglini, revised 2011.
    16. Mariacristina Piva & Marco Vivarelli, 2005. "Innovation and Employment: Evidence from Italian Microdata," Journal of Economics, Springer, vol. 86(1), pages 65-83, October.
    17. Gagliardi, Luisa, 2019. "The impact of foreign technological innovation on domestic employment via the industry mix," Research Policy, Elsevier, vol. 48(6), pages 1523-1533.
    18. Horbach Jens, 2010. "The Impact of Innovation Activities on Employment in the Environmental Sector – Empirical Results for Germany at the Firm Level," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 230(4), pages 403-419, August.
    19. Waheed, Abdul, 2012. "Employment effect of innovation: microdata evidence from Bangladesh and Pakistan," MERIT Working Papers 2012-024, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    20. Vincent Van Roy & Daniel Vertesy & Marco Vivarelli, 2015. "The Employment Impact of Innovation: Evidence from European Patenting Companies," DISCE - Quaderni del Dipartimento di Politica Economica ispe0075, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).

    More about this item

    Keywords

    Information and Communication Technology; Outsourcing; Employment Growth;
    All these keywords.

    JEL classification:

    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
    • L24 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Contracting Out; Joint Ventures
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:zewdip:10108. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/zemande.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.