Firm-level effects of offshoring of materials and services on relative labor demand

Andersson, Linda; Karpaty, Patrik; Savsin, Selen

doi:10.1007/s10290-015-0243-8

Cited by 14 publications

(31 citation statements)

References 54 publications

(85 reference statements)

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“…Our study is closely related to Andersson et al. () who also analyse relative demand for skilled labour in Swedish manufacturing firms, distinguishing between goods and services offshoring. In this study, we take the analysis one step further and incorporate inshoring to control for potential additional effects (offsetting or reinforcing effects) on the skill composition.…”

Section: Introductionmentioning

confidence: 67%

“…() and Andersson et al. (). The mean values of these firm characteristics reported in Table A8 in the Appendix show that firms with trade in intermediate services are generally much larger in all aspects compared to firms with trade in intermediate goods, where it is especially interesting to note the much higher R&D intensity and skill share.…”

Section: Patterns Of Offshoring Inshoring and Labour Composition In mentioning

confidence: 98%

“…To the best of our knowledge, Andersson et al. () is the only study with a similar focus but using firm‐level data. Their results clearly indicate that it is important to distinguish between services and materials offshoring.…”

Section: Literature Reviewmentioning

confidence: 99%

“…With reference to the International Standard Classification of Education (ISCED), we use the same definition of skill groups as previously done by, for example, Bandick and Hansson () and Andersson et al. () on Swedish data and Baumgarten et al. () on German data.…”

Section: Datamentioning

confidence: 99%

“…(), Feenstra and Hanson (), Hansson (), Ekholm and Hakkala (), Hijzen et al (), Bandick and Hansson () and Andersson et al. ().…”

Section: Empirical Analysisunclassified

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Labour Demand, Offshoring and Inshoring: Evidence from Swedish Firm‐level Data

2016

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The objective of this paper was to analyse effects on firm–level relative demand for skilled labour due to imports of intermediates (offshoring) and exports of intermediates (inshoring). The study is based on a data set of Swedish manufacturing firms, 1997–2002, using trade flows in intermediate goods and services, respectively. Descriptive data show that goods inshoring is much larger than goods offshoring, while the reverse is true for services. There is, however, a strong increase in services inshoring over the study period. Controlling for potential endogeneity in offshoring and inshoring, our results indicate that there is a positive effect of services offshoring on the skill composition of workers in Swedish firms, while no such causality can be established from inshoring.

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Section: Introductionmentioning

confidence: 67%

Section: Patterns Of Offshoring Inshoring and Labour Composition In mentioning

confidence: 98%

Section: Literature Reviewmentioning

confidence: 99%

Section: Datamentioning

confidence: 99%

“…(), Feenstra and Hanson (), Hansson (), Ekholm and Hakkala (), Hijzen et al (), Bandick and Hansson () and Andersson et al. ().…”

Section: Empirical Analysisunclassified

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Labour Demand, Offshoring and Inshoring: Evidence from Swedish Firm‐level Data

2016

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Services Input Intensity and US Manufacturing Employment Responses to the China Shock

et al. 2020

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The Robert Schuman Centre for Advanced Studies (RSCAS), created in 1992 and directed by Professor Brigid Laffan, aims to develop inter-disciplinary and comparative research and to promote work on the major issues facing the process of integration and European society.The Centre is home to a large post-doctoral programme and hosts major research programmes and projects, and a range of working groups and ad hoc initiatives. The research agenda is organised around a set of core themes and is continuously evolving, reflecting the changing agenda of European integration and the expanding membership of the European Union.

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The external effects of offshoring on job security in SMEs

2022

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Offshoring leads to higher job exits in small and medium-sized enterprises (SMEs) that do not offshore themselves, as per new evidence from manufacturing firms in Sweden. This effect is highest for less educated and older workers. Manufacturers are ever more involved in fragmented supply chains where they supply intermediate inputs to one another. This suggests that any decision made by one manufacturer to offshore (replace a local supplier with a foreign one) may have negative effects on the workers of other firms. SMEs may be more vulnerable to offshoring because they tend to be more local in their activities, although they may not offshore themselves. This study uses a data set from Sweden to explore the effects of offshoring on the job security of workers in small and medium-size enterprises (SMEs). We find that offshoring activities within Sweden lead to higher job exits in SMEs that do not offshore themselves. This effect is highest for low skill (less educated) and older workers. Policy makers should be aware of the vulnerability of SMEs to offshoring activities of other often-larger firms through channels related to supply chains.

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Firm-level effects of offshoring of materials and services on relative labor demand

Cited by 14 publications

References 54 publications

Labour Demand, Offshoring and Inshoring: Evidence from Swedish Firm‐level Data

Labour Demand, Offshoring and Inshoring: Evidence from Swedish Firm‐level Data

Services Input Intensity and US Manufacturing Employment Responses to the China Shock

The external effects of offshoring on job security in SMEs

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