Offshoring and relative labor demand from a task perspective

Jan Hogrefe (janhogrefe@msn.com)

No 13-067, ZEW Discussion Papers from ZEW - Leibniz Centre for European Economic Research

Abstract: This paper provides new evidence on how offshoring shifts relative labor demand for tasks at the industry level. A novel theoretical mechanism, based on sorting of heterogeneous workers into occupations with task dependent offshoring cost, guides estimation. Cost shares of tasks are linked to offshoring in a panel estimation using German data for 1998-2007. It is shown that offshoring shifts home country relative labor demand towards more complex tasks with higher relocation cost. This demand shift holds when controlling for an industry's skill composition and is particularly strong for offshoring to non-OECD countries.

Keywords: trade; offshoring; tasks; relative labor demand (search for similar items in EconPapers)
JEL-codes: F16 F66 J23 (search for similar items in EconPapers)
Date: 2013
New Economics Papers: this item is included in nep-lab and nep-lma
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (14)

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Persistent link: https://EconPapers.repec.org/RePEc:zbw:zewdip:13067

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