Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/24671
Authors: 
Ohnemus, Jörg
Year of Publication: 
2007
Series/Report no.: 
ZEW Discussion Papers 07-087
Abstract: 
Using German firm-level data, an endogenous switching regression model within a production function framework is estimated in order to explore differences in labor productivity between IT outsourcing and non-IT outsourcing firms. This approach takes possible complementarities between IT outsourcing and production input factors into account and further allows IT outsourcing to affect any factor of the production function. Estimation results show that IT outsourcing firms produce more efficiently than non-IT outsourcing firms. Furthermore, they have a significantly larger output elasticity with respect to computer workers. Therefore computer workers and IT outsourcing can be interpreted as complementary factors positively affecting firms? labor productivity. An additional analysis indicates that IT outsourcing, in the medium-term, has a positive effect on firms? employment growth rate.
Subjects: 
IT Outsourcing
Productivity
Endogenous Switching Regression
Employment Growth
JEL: 
C21
D24
J24
J21
Document Type: 
Working Paper

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