Technological Change and Domestic Outsourcing

Bergeaud, Antonin; Mazet, Clément; Malgouyres, Clément; Signorelli, Sara

doi:10.2139/ssrn.3900865

Cited by 5 publications

(4 citation statements)

References 8 publications

(9 reference statements)

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“…Indeed, several studies that identify the impact of outsourcing on outsourced workers' pay and conditions find that their wages tend to decline relative to those not outsourced. This penalty is estimated at between 4% (Bergeaud et al, 2021) and 12% (Bilal & L'Huillier 2021) in France, 8-19% for temporary agency workers in Argentina (Drenik et al, 2023), 4-7 per cent, or 8-24% for specific profiles, in the United States (Dube and Kaplan, 2010), and around 10% in Germany (Goldschmidt and Schmieder 2017). Where it is possible to measure this, these pay losses are almost completely due to outsourced workers losing out on firm or industry premia and rents (Drenik et al, 2023;Dube and Kaplan, 2010;Goldschmidt and Schmieder 2017).…”

Section: Conceptual Frameworkmentioning

confidence: 99%

“…As firms differ in their ability to take up new technologies, productivity differences also grow, in turn raising divergence in firm premia and increasing inequality overall (Berlingieri et al, 2017; Faggio et al, 2010). New technologies may also make it easier to monitor employees and maintain standards while outsourcing (Bergeaud et al, 2021; Fort, 2017).…”

Section: Conceptual Frameworkmentioning

confidence: 99%

“…While there is indication that domestic outsourcing events are increasing and are associated with worse labour market outcomes (see e.g. Bergeaud et al, 2021;Goldschmidt and Schmieder, 2017;OECD, 2021), this study goes beyond the existing literature by considering trends herein and how they are linked to macroeconomic and institutional factors making domestic outsourcing more likely. This is done by using representative cross-national data across the European Union countries from the Labour Force Survey [LFS] from 2001 to 2020.…”

Section: Introductionmentioning

confidence: 96%

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Working apart: Domestic outsourcing in Europe

Zwysen

2024

European Journal of Industrial Relations

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Lower-skilled workers face increasing pressures. Their bargaining position is declining under the twin pressures of globalisation and technological change; and they risk losing access to better positions as firms’ pay and conditions arrangements increasingly drift apart. Rising between-firm differences partly come about through increasing separation of lower-skilled workers into lower-paying firms with worse conditions, thereby reducing their opportunities further. Such polarisation is partly driven by (domestic) outsourcing where main firms take certain tasks that are seen as non-core out of their payroll, instead purchasing those same tasks from another official employer or temporary employment agency while retaining control. Outsourcing generally brings worse conditions and lower pay. This paper uses cross-national European data from the Labour Force Survey (LFS) along with contextual data to study how outsourcing – proxied by moves to business services providers or temporary employment agencies – contributes to a worse labour market position of lower-educated workers over time. I find that (1) domestic outsourcing is increasing over time across Europe; (2) outsourced workers are working under generally worse conditions than their counterparts; and (3) this process is not universal: it hits harder in sectors with greater technological innovation and can be alleviated by union density and worker representation.

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Section: Conceptual Frameworkmentioning

confidence: 99%

Section: Conceptual Frameworkmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 96%

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Working apart: Domestic outsourcing in Europe

Zwysen

2024

European Journal of Industrial Relations

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“…11 11 Studies have investigated the impacts of broadband using firm‐level data in Norway (Akerman et al., 2015), Ireland (Haller & Lyons, 2015), the United Kingdom (DeStefano et al., 2018), Italy (Canzian et al., 2019; Colombo et al., 2013), Germany (Bertschek et al., 2013; Stockinger, 2019), France (Bergeaud et al., 2021), and New Zealand (Fabling & Grimes, 2021; Grimes et al., 2012). …”

mentioning

confidence: 99%

Broadband and rural development: Impacts of the U.S. Department of Agriculture Broadband Initiatives Program on saving and creating jobs

Rupasingha,

Pender,

Williams

2024

Economic Inquiry

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This study analyzed the impact of the USDA's Broadband Initiatives Program on employment and business survival. While average employment declined in both program and non‐program areas, the decline was less severe in program areas, suggesting a positive impact. This impact was primarily observed in metro counties, the service sector, and employer establishments. Businesses in program areas were also less likely to fail than those outside the program areas, with variation across location, business type, and industry.

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The Outsourcing Wage Gap: Exploring the Interplay of Gender and Tasks Along the Job Distribution

Fana,

Giangregorio,

Villani

2024

Ital Econ J

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This paper examines the wage penalty of outsourced workers in France, providing novel insights to the existing literature. First, it investigates the extent to which the wage penalty differs between outsourced male and female workers. Our results reveal that outsourced workers experience pronounced wage penalty, with this effect being stronger for women. Second, in contrast to most studies, we analyse outsourcing across the entire job distribution. We find that the wage penalty is significantly higher for outsourced workers employed in jobs at the lower end of the wage distribution compared to those employed at the top. Third, we assess whether the wage penalty experienced by outsourced workers can be attributed to the tasks they perform, such as repetitiveness, forms of control, and managerial duties. The results show that the tasks performed, while can alter the wage penalty, do not significantly reshape the main results. Thus, differences in tasks do not appear to be a determining factor in the wage penalty of outsourced workers. Longitudinal analysis strengthens the validity of the cross-sectional findings, highlighting that the wage penalty associated with outsourcing does not result from shifts in individual employee characteristics but rather from disparities in their job status and other time-invariant attributes. In summary, being an outsourced worker implies a degradation in wage treatment, which is exacerbated by gender. Given the increasing importance of this employment practice, it underscores the urgent need for policy interventions to address these critical issues.

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Technological Change and Domestic Outsourcing

Cited by 5 publications

References 8 publications

Working apart: Domestic outsourcing in Europe

Working apart: Domestic outsourcing in Europe

Broadband and rural development: Impacts of the U.S. Department of Agriculture Broadband Initiatives Program on saving and creating jobs

The Outsourcing Wage Gap: Exploring the Interplay of Gender and Tasks Along the Job Distribution

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