Offshoring and Relative Labor Demand in Swedish Firms

Linda Andersson Järnberg and Patrik Karpaty

No 2007:5, Working Papers from Örebro University, School of Business

Abstract: The objective of this paper is to analyze relative employment effects in Sweden due to offshoring. In contrast to most previous studies in this field, our analysis is based on firm level data. More specifically the dataset contains Swedish manufacturing firms, 1997-2002. In addition we have access to actual firm level import data on intermediate goods and services, respectively. The results show that the relative demand for high skilled labor is positively affected by service offshoring and offshoring of goods to Asia, but negatively affected by offshoring to high income countries. The relative demand for medium skilled labor is negatively affected by offshoring of goods to Eastern Europe, but positively affected by offshoring to high income countries. In contrast to expectations, the results show that the relative demand for low skilled labor is positively affected by offshoring of goods to Eastern Europe. However, these results are related to very small elasticities, which in turn translates into a small number of jobs affected.

Keywords: Offchoring; firm level; data relative employment; translog cost function (search for similar items in EconPapers)
JEL-codes: F14 F23 L23 (search for similar items in EconPapers)
Pages: 17 pages
Date: 2007-10-29
New Economics Papers: this item is included in nep-bec, nep-eec, nep-lab and nep-sea
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Forthcoming as Andersson, Linda, Patrik Karpaty and Selen Savsin, 'Firm Level Effects of Offshoring of Materials and Services on Relative Labor Demand' in Review of World Economics.

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Persistent link: https://EconPapers.repec.org/RePEc:hhs:oruesi:2007_005

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