Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/273023 
Authors: 
Year of Publication: 
2022
Series/Report no.: 
ETLA Working Papers No. 97
Publisher: 
The Research Institute of the Finnish Economy (ETLA), Helsinki
Abstract: 
I use novel high-quality survey data on firms' international sourcing activities combined with firm-level financial and linked employer-employee data to study the effect of services offshoring on wages and employment. To overcome the endogeneity related to reverse causality and omitted variables, I use microsynth, a variation of the synthetic control method specially developed for high-dimensional microdata. I find that offshoring firms pay higher wages for both high-skilled and low-skilled workers, and employ fewer FTE workers compared with a synthetic control, but these effects take several years to appear.
Subjects: 
Service offshoring
Offshoring
JEL: 
F14
C33
J31
Document Type: 
Working Paper

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