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How Offshoring Can Affect the Industries’ Skill Composition

Daniel Horgos and Lucia Tajoli ()

No 296, Development Working Papers from Centro Studi Luca d'Agliano, University of Milano

Abstract: While most offshoring literature focus on the effects on relative wages, other implications do not receive the necessary attention. This paper investigates effects on the industries’ skill ratio. It sum-marizes the empirical literature, discusses theoretical findings, and provides first empirical evidence for Germany. As results show, effects are mainly driven by the industry where offshoring takes place. In high skill intensive industries, the high skill labor ratio increases (vice versa for low skill intensive industries). Since this result is in line with other empirical findings but seems to contradict with theory, the paper additionally discusses possible explanations.

Keywords: o shoring; labor market implications; skill ratio; skill composition (search for similar items in EconPapers)
JEL-codes: F16 J21 (search for similar items in EconPapers)
Pages: 20
Date: 2010-07-31
New Economics Papers: this item is included in nep-int and nep-lab
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https://www.dagliano.unimi.it/media/WP2010_296.pdf (application/pdf)

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Journal Article: How Offshoring Can Affect the Industries’ Skill Composition (2015) Downloads
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