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Offshoring and the Elasticity of Labour Demand

Neil Foster-McGregor, Johannes Poeschl () and Robert Stehrer
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Johannes Poeschl: Vienna Institute for International Economic Studies (wiiw)

Authors registered in the RePEc Author Service: Johannes Pöschl ()

Open Economies Review, 2016, vol. 27, issue 3, No 5, 515-540

Abstract: Abstract This paper examines the impact of offshoring on labour demand and labour demand elasticities for a sample of 40 countries over the period 1995–2009 using the World Input–output Database (WIOD). Estimating the conditional labour demand model we find that offshoring impacts negatively labour demand, and in particular the demand for low- and medium-educated labour, with some evidence indicating that offshoring has tended to increase labour demand elasticities. Of particular interest are results for the subsamples of developed and developing countries. Most notably, we find that the negative effects of offshoring in developed countries are largest for high-educated labour, an outcome which we show is due to the offshoring of developed countries with other developed countries.

Keywords: Labour demand; Offshoring (search for similar items in EconPapers)
JEL-codes: F16 (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (19)

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Working Paper: Offshoring and the Elasticity of Labour Demand (2012) Downloads
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DOI: 10.1007/s11079-015-9384-6

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