Offshoring and the Skill Structure of Labour Demand

Gaaitzen de Vries, Neil Foster-McGregor and Robert Stehrer

No 86, wiiw Working Papers from The Vienna Institute for International Economic Studies, wiiw

Abstract: In this paper we examine the link between international outsourcing – or offshoring – and the skill structure of labour demand for a sample of 40 countries over the period 1995 2009. The paper uses data from the recently compiled World-Input-Output-Database (WIOD) to estimate a system of variable factor demand equations. These data allow us to exploit both a cross-country and cross-industry dimension and split employment into three skill categories. Our results indicate that while offshoring has impacted negatively upon all skill levels, the largest impacts have been observed for medium-skilled (and to a lesser extent high-skilled) workers. Such results are consistent with recent evidence indicating that medium-skilled workers have suffered to a greater extent than other skill types in recent years.

Keywords: offshoring; trade; wages; labour demand (search for similar items in EconPapers)
JEL-codes: F14 J31 (search for similar items in EconPapers)
Pages: 22 pages including 8 Tables and 4 Figures
Date: 2012-06
New Economics Papers: this item is included in nep-bec, nep-int, nep-lab, nep-lma and nep-mig
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

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Journal Article: Offshoring and the skill structure of labour demand (2013)
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