Firm Level Effects of Offshoring of Goods and Services on Relative Labor Demand

Linda Andersson Järnberg and Patrik Karpaty

No 2013:2, Working Papers from Örebro University, School of Business

Abstract: Based on firm level data for the Swedish manufacturing sector the objective of this paper is to analyze relative labor demand effects due to offshoring. Data allow us to distinguish between goods and service offshoring and from which country Swedish firms source their inputs. Overall, our results give no support to the fears that offshoring of goods or services lead to out-location of high-skilled activity in Swedish firms. Rather, this paper finds robust evidence that the aggregate effects from offshoring lead to increasing relative demand of high-skilled labor, mainly due to service offshoring.

Keywords: Offshoring; firm level data; relative employment; translog cost function (search for similar items in EconPapers)
JEL-codes: F14 F16 (search for similar items in EconPapers)
Pages: 34 pages
Date: 2012-10-19
Note: This is an extensively revised version of working paper No. 2007:5
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Citations: View citations in EconPapers (1)

Forthcoming as Andersson, Linda, Patik 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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