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International Outsourcing and the Skill Structure of Labour Demand in the United Kingdom

Alexander Hijzen (), Holger Görg () and Robert C. Hine

No 437, Discussion Papers of DIW Berlin from DIW Berlin, German Institute for Economic Research

Abstract: This paper investigates empirically the link between international outsourcing and the skill structure of labour demand in the United Kingdom. It is the first detailed study of this issue for the UK. Outsourcing is calculated using import-use matrices of input-output tables for manufacturing industries for the period 1982 to 1996. Estimating a system of variable factor demands, our main results show that international outsourcing has had a strong negative impact on the demand for unskilled labour. Hence, international outsourcing is an important component in explanations of the changing skill structure of manufacturing industries in the United Kingdom.

Keywords: Outsourcing; Fragmentation; Trade; Wages; Skill-biased technological change (search for similar items in EconPapers)
JEL-codes: F14 J31 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-bec and nep-eec
Date: 2004
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Journal Article: International Outsourcing and the Skill Structure of Labour Demand in the United Kingdom (2005) Downloads
Working Paper: International Outsourcing and the Skill Structure of Labour Demand in the United Kingdom (2004) Downloads
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