Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/128797
Authors: 
Falk, Martin
Wolfmayr, Yvonne
Year of Publication: 
2005
Series/Report no.: 
WIFO Working Papers 262
Abstract: 
This paper investigates the impact of international outsourcing on total employment using two-digit manufacturing data for seven EU countries for the period of 1995-2000. As is common in other empirical work, international outsourcing is measured as imports in intermediate imports. Estimates using OLS first differences show that imported materials from the same industry originating from low-wage countries have a significant and negative impact on total employment. The estimates suggest that rising intermediate imports from low-wage countries may account for an approximate reduction of 0.25 percentage points in employment per year. Sample split regressions show that the impact of imported materials from low-wage countries is statistically significant in industries with low skill intensity but not in skill intensive industries such as machinery, electrical, optical and transport equipment.
Subjects: 
Trade in intermediate imports
labour demand
cross-country analysis
JEL: 
F10
J31
Document Type: 
Working Paper

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