The impact of service and goods offshoring on employment: firm-level evidence
The impact of service and goods offshoring on employment: firm-level evidence
We use a newly constructed database of Belgian firms that combines
individual transaction-level data on international trade in goods and services
with annual financial accounts to produce fresh evidence on the impact of goods
and service offshoring on employment and other firms’ outcomes for both the
manufacturing industry and services sector. Our results show that: (i) goods
offshoring has a positive impact on employment growth of both low and high
educated workers in manufacturing but this effect is substantially reduced when
controlling for scale effects; (ii) service offshoring has a negative impact on
employment growth among high educated workers in the services sector; and (iii)
the substitutability between offshoring and domestic non-labor inputs is higher than the one between offshoring and labor.
677-711
Ornaghi, Carmine
33275e47-4642-4023-a195-39c91d0146b0
Van Beveren, Ilke
ad497094-424d-433d-bd5f-3183d962d761
Vanormelingen, Stijn
47bc18f5-195b-40b1-add7-74bf7c6b73a9
May 2021
Ornaghi, Carmine
33275e47-4642-4023-a195-39c91d0146b0
Van Beveren, Ilke
ad497094-424d-433d-bd5f-3183d962d761
Vanormelingen, Stijn
47bc18f5-195b-40b1-add7-74bf7c6b73a9
Ornaghi, Carmine, Van Beveren, Ilke and Vanormelingen, Stijn
(2021)
The impact of service and goods offshoring on employment: firm-level evidence.
Canadian Journal of Economics, 54 (2), .
(doi:10.1111/caje.12520).
Abstract
We use a newly constructed database of Belgian firms that combines
individual transaction-level data on international trade in goods and services
with annual financial accounts to produce fresh evidence on the impact of goods
and service offshoring on employment and other firms’ outcomes for both the
manufacturing industry and services sector. Our results show that: (i) goods
offshoring has a positive impact on employment growth of both low and high
educated workers in manufacturing but this effect is substantially reduced when
controlling for scale effects; (ii) service offshoring has a negative impact on
employment growth among high educated workers in the services sector; and (iii)
the substitutability between offshoring and domestic non-labor inputs is higher than the one between offshoring and labor.
Text
offshoring_CJE
- Accepted Manuscript
More information
Accepted/In Press date: 28 January 2019
e-pub ahead of print date: May 2021
Published date: May 2021
Additional Information:
Publisher Copyright:
© 2021 Canadian Economics Association
Identifiers
Local EPrints ID: 440738
URI: http://eprints.soton.ac.uk/id/eprint/440738
ISSN: 0008-4085
PURE UUID: cb3c7a1c-12bd-4103-931a-665410e24d42
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Date deposited: 14 May 2020 16:46
Last modified: 17 Mar 2024 05:33
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Contributors
Author:
Ilke Van Beveren
Author:
Stijn Vanormelingen
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