WP 2009-12 Errors from the “Proportionality Assumption†in the Measurement of Offshoring: Application to German Labor Demand

Deborah Winkler

No 2009-12, SCEPA working paper series. from Schwartz Center for Economic Policy Analysis (SCEPA), The New School

Abstract: Offshoring has expanded rapidly in most industrialized countries and its impact on the labor markets in these countries has been the source of enormous debate in both scholarly and popular circles. Since data on imported inputs at the sectoral level are not available for the US and the UK, every sector is assumed to import inputs of each material and service in the same proportion as its economy-wide use of that input. German input-output data differentiate between domestically purchased inputs and imported inputs, which permits the authors to calculate a direct measure of sectoral imported input use and compare this measure to the proxy-based measure based on the standard proportionality assumption.

Keywords: Services Offshoring; Offshoring Intensity; Labor Demand (search for similar items in EconPapers)
Pages: 31 pages
Date: 2009-10
New Economics Papers: this item is included in nep-lab
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