Offshoring and the geography of jobs in Great Britain

Luisa Gagliardi, Simona Iammarino and Andrés Rodríguez-Pose

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: This paper investigates the impact of the offshoring of production activities on domestic jobs in Great Britain. The paper considers both the spatial heterogeneity across local labour markets and variations in the intensity of outward flows of investments abroad (OFDI) across industries in order to shed new light on the job creation/destruction implications of offshoring. The results suggest that offshoring may generate significant job losses in routine occupations in areas that have been more exposed to the relocation of production abroad, regardless of whether the relocation has been to developed or developing/emerging countries. Offshoring to developing/emerging countries has, by contrast, a positive effect on the generation of non-routine jobs. Efficiency gains accruing from the international reorganization of production increase in the long-run, with compensation mechanisms operating through growth of employment in higher value added activities at home. Overall, our results uncover important spatial and interpersonal inequalities in job creation, which provide new challenges for public policy.

Keywords: offshoring; local labour market; job creation and destruction; routine and non-routine occupatins (search for similar items in EconPapers)
JEL-codes: F21 J23 J24 J42 (search for similar items in EconPapers)
Pages: 40 pages
Date: 2015-10
New Economics Papers: this item is included in nep-geo, nep-int and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

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http://eprints.lse.ac.uk/65018/ Open access version. (application/pdf)

Related works:
Working Paper: Offshoring and the Geography of Jobs in Great Britain (2015)
Working Paper: Offshoring and the Geography of Jobs in Great Britain (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:65018

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