Service Imports, Workforce Composition, and Firm Performance: Evidence from Finnish Microdata

Andrea Ariu, Katariina Nilsson Hakkala, J. Jensen () and Saara Tamminen

No 26355, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: This paper uses unique Finnish firm-level micro data on service imports, work- force composition, and firm characteristics to examine changes in employment composition and performance of Finnish service importers during a period of a significant increase in services imports (2002-2012). We use world service export supply shocks, which we allocate to firms based on their highly specialized service input structure, as an instrument to identify the impact of service offshoring. We find that firms that increase imports of service inputs reduce employment of low-skill service workers, increase employment of (high-skilled) managers and improve their performance in terms of sales (turnover), assets, service exports, and firm survival. The employment composition and performance responses to service imports differ across firms in the manufacturing sector and those in the service sector.

JEL-codes: F10 F14 L80 (search for similar items in EconPapers)
Date: 2019-10
New Economics Papers: this item is included in nep-bec and nep-int
Note: ITI
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (16)

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Related works:
Working Paper: Service Imports, Workforce Composition, and Firm Performance: Evidence from Finnish Microdata (2019)
Working Paper: Service Imports, Workforce Composition, and Firm Performance: Evidence from Finnish Microdata (2019)
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