Working Paper 07-12 - Offshoring and the Skill Structure of Labour Demand in Belgium

Bart Hertveldt and Bernhard Klaus Michel

Working Papers from Federal Planning Bureau, Belgium

Abstract: A major concern regarding the consequences of offshoring is about the labour market position of low-skilled workers. This paper provides evidence for Belgium that offshoring has had a negative impact on the employment share of low-skilled workers in the manufacturing sector between 1995 and 2007. The main contribution to the fall in the low-skilled employment share came from materials offshoring to Central and Eastern Europe (21%), followed by business services offshoring (8%). In manufacturing industries with a higher ICT capital intensity the impact of offshoring is smaller. For market services industries, no robust conclusions regarding the impact of offshoring on low-skilled employment could be drawn.

JEL-codes: F16 J24 (search for similar items in EconPapers)
Date: 2012-05-30
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Persistent link: https://EconPapers.repec.org/RePEc:fpb:wpaper:201207

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