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A Note on the Determinants and Consequences of Outsourcing Using German Data

John Addison (), Lutz Bellmann, André Pahnke and Paulino Teixeira ()
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Lutz Bellmann: Institut für Arbeitsmarkt- und Berufsforschung der Bundesagentur für Arbeit, Nürnberg
André Pahnke: Institut für Arbeitsmarkt- und Berufsforschung der Bundesagentur für Arbeit, Nürnberg

No 2008-04, GEMF Working Papers from GEMF - Faculdade de Economia, Universidade de Coimbra

Abstract: Using German data from the Institute for Employment Research Establishment Panel, this paper constructs two main measures of outsourcing and examines their determinants and consequences for employment. There are some commonalities in the correlates of the two measures of outsourcing, as well as agreement on the absence of adverse employment effects across all industries. For one specification, however, some negative effects are reported for manufacturing industry, balanced by positive effects for the services sector for another. But there are no indications of survival bias. This is because the association between outsourcing and plant closings is predominantly negative, albeit poorly determined.

Keywords: outsourcing; organizational change; employment change; plant closings; value added (search for similar items in EconPapers)
JEL-codes: F16 J23 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-bec and nep-lab
Date: 2008-09
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