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: IAB, Nürnberg
André Pahnke: IAB, Nürnberg

No 3608, IZA Discussion Papers from Institute for the Study of Labor (IZA)

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, nep-int and nep-lab
Date: 2008-07
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Working Paper: A Note on the Determinants and Consequences of Outsourcing Using German Data (2008)
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