Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/28369 
Year of Publication: 
2009
Series/Report no.: 
Kiel Working Paper No. 1541
Publisher: 
Kiel Institute for the World Economy (IfW), Kiel
Abstract: 
We use data on motives of international outsourcing and location choices from a recent survey of European companies to assess the labour market repercussions at home. Employing Tobit models we differentiate between job losses as well as job creation for high and low skilled employees at the sector level in ten European home countries. Our findings are in conflict with public concerns about adverse employment effects resulting primarily from cost-oriented sourcing in low wage locations. The quantitative impact on job losses remains modest in the case of cost-saving motives. The simple divide between low and high wage locations hides substantial heterogeneity within both groups. We also find that job losses are typically compensated partly by new job creation, particularly for high skilled workers.
Subjects: 
Outsourcing
outward FDI
motives
location choice
job loss
job creation
(un)skilled labour
JEL: 
F23
J21
Document Type: 
Working Paper

Files in This Item:
File
Size
331.95 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.