Outsourcing, wage disparities, and labour-market segmentation in Europe: new evidence from 2024 EWCS

Teresa Farinha (), Stefano Fusaro () and Andrea Conte ()
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Teresa Farinha: European Commission - JRC, https://joint-research-centre.ec.europa.eu/index_en
Stefano Fusaro: European Commission - JRC, https://joint-research-centre.ec.europa.eu/index_en
Andrea Conte: European Commission - JRC, https://joint-research-centre.ec.europa.eu/index_en

No JRC148468, JRC Research Reports from Joint Research Centre

Abstract: This Policy Insight examines how outsourcing-related activities are associated with wage disparities in the EU, using the 2024 European Working Conditions Survey. It identifies likely outsourcing-related work by combining detailed occupation and sector information, and distinguishes between operational, professional and other outsourced service activities. The results show clear differences across types of activity: operational outsourcing-related activities are associated with lower monthly earnings, while professional activities are associated with higher monthly earnings. Much of this variation is accounted for by occupational composition, with differences also varying across workers and territories. These patterns are consistent with outsourcing-related activities being concentrated in distinct labour-market segments.

Date: 2026-10
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