Firm-level effects of offshoring of materials and services on relative labor demand

Linda Andersson Järnberg, Patrik Karpaty and Selen Savsin ()
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Selen Savsin: Örebro University

Review of World Economics (Weltwirtschaftliches Archiv), 2016, vol. 152, issue 2, No 4, 350 pages

Abstract: Abstract Based on firm-level data over the period 1997–2002 for the Swedish manufacturing sector the objective of this paper is to analyze relative labor demand effects due to offshoring, separating between materials and services offshoring and also geographical location of trade partner. Overall, our results give no support to the fears that offshoring of materials or services lead to out-location of high-skilled activity in Swedish firms. Rather, this paper finds evidence that the aggregate effects from offshoring lead to increasing relative demand of high-skilled labor, mainly due to services offshoring to middle income countries.

Keywords: Offshoring; Firm-level data; Relative employment; Translog cost function (search for similar items in EconPapers)
JEL-codes: F14 F16 (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (16)

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DOI: 10.1007/s10290-015-0243-8

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