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The impact of service and goods offshoring on employment: firm-level evidence

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.
0008-4085
Ornaghi, Carmine
33275e47-4642-4023-a195-39c91d0146b0
Van Beveren, Ilke
ad497094-424d-433d-bd5f-3183d962d761
Vanormelingen, Stijn
47bc18f5-195b-40b1-add7-74bf7c6b73a9
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 (2019) The impact of service and goods offshoring on employment: firm-level evidence. Canadian Journal of Economics. (In Press)

Record type: Article

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.

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Accepted/In Press date: 28 January 2019

Identifiers

Local EPrints ID: 440738
URI: http://eprints.soton.ac.uk/id/eprint/440738
ISSN: 0008-4085
PURE UUID: cb3c7a1c-12bd-4103-931a-665410e24d42
ORCID for Carmine Ornaghi: ORCID iD orcid.org/0000-0003-2704-2537

Catalogue record

Date deposited: 14 May 2020 16:46
Last modified: 02 Jun 2020 00:29

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Contributors

Author: Carmine Ornaghi ORCID iD
Author: Ilke Van Beveren
Author: Stijn Vanormelingen

University divisions

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