Offshore Outsourcing and the size of the French Industrial Labor Force

Patrick Aubert and Patrick Sillard

Documents de Travail de l'Insee - INSEE Working Papers from Institut National de la Statistique et des Etudes Economiques

Abstract: We estimate the amount of job losses in the manufacturing sector in France due to offshore outsourcing. Our estimation is based on exhaustive, micro-level data covering all firms in the manufacturing sector in France from 1995 to 2001. We identify the groups or firms where employment decreases in French units and, at the same time, for which the imports of the good previously produced in France increases. Between 1995 and 2001, 13 500 jobs are lost each year on average in France due to offshore outsourcing in the manufacturing sector. In slightly less than half of the cases, offshore outsourcing is directed towards a low wage country : mainly China, but also North Africa, Eastern Europe, Asia, Brazil. Job losses are more frequent in some sectors, such as clothing, textile, domestic equipment, manufacture of electronic equipments and components. Nonetheless, offshore outsourcing is observed in nearly all sectors.

Keywords: offshore outsourcing; international competition; job loss; industrial organization (search for similar items in EconPapers)
JEL-codes: F16 F23 (search for similar items in EconPapers)
Date: 2005
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