Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/39214 
Year of Publication: 
2009
Series/Report no.: 
IAW Diskussionspapiere No. 55
Publisher: 
Institut für Angewandte Wirtschaftsforschung (IAW), Tübingen
Abstract: 
We analyze the relationship between offshoring and the onshore workforce composition in German multinational enterprises (MNEs), using plant data that allow us to discern tasks, occupations, and workforce skills. Offshoring is associated with a statistically significant shift towards more non-routine and more interactive tasks, and with a shift towards highly educated workers. Moreover, the shift towards highly educated workers is in excess of what is implied by changes in either the task or the occupational composition. Whether offshored activities are located in low-income or high-income countries does not alter the direction of the relationship. We find offshoring to predict between 10 and 15 percent of observed changes in wage-bill shares of highly educated workers and measures of non-routine and interactive tasks.
Subjects: 
Trade in tasks
multinational enterprises
demand for labor linked employer-employee data
JEL: 
F16
F14
F23
J23
J24
Document Type: 
Working Paper

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