Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/80609
Authors: 
Böckerman, Petri
Maliranta, Mika
Year of Publication: 
2013
Series/Report no.: 
IZA Discussion Paper 7399
Abstract: 
This paper examines the relationship between outsourcing and various aspects of employee well-being by devoting special attention to the role of occupational restructuring as a conveying mechanism. Using linked employer-employee data, we find that offshoring involves job destruction, especially when the destination is a low-wage country. In such circumstances, staying employees' job satisfaction is reduced. However, the relationship between outsourcing and employee well-being is not entirely negative. Our evidence also shows that offshoring to high-wage countries stimulates the vertical mobility of employees in affected firms in a manner that improves perceived well-being, particularly in terms of better prospects for promotion.
Subjects: 
globalization
outsourcing
offshoring
downsizing
working conditions
subjective well-being
job satisfaction
JEL: 
J28
F23
Document Type: 
Working Paper

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