The Effect of Offshoring on Labor Demand: Evidence from Sweden ∗

Karolina Ekholm · Katariina Nilsson Hakkala

86 citations0/0 files storedRePEc: Research Papers in Economics

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Global trade and economics Labor market dynamics and wage inequality Outsourcing and Supply Chain Management

Abstract

We analyze the effects of offshoring of intermediate input production on labor demand in Sweden, distinguishing between workers with different educational attainments. The econometric results using data for the 1995-2000 period indicate that offshoring -- in particular to low-income countries -- tends to shift labor demand away from workers with an intermediate level of education. Offshoring to high-income countries, which is the largest component of overall offshoring, does not have any statistically significant effect on the composition of labor demand.

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References

2008Trading Tasks: A Simple Theory of Offshoring 1994Changes in the Demand for Skilled Labor within U. S. Manufacturing: Evidence from the Annual Survey of Manufactures 1996Globalization, Outsourcing, and Wage Inequality 1986Errors in variables in panel data 1999The Impact of Outsourcing and High-Technology Capital on Wages: Estimates For the United States, 1979-1990 1998Technology and changes in skill structure: evidence from seven OECD countries 2005Fear of service outsourcing: is it justified?2005International Outsourcing and the Skill Structure of Labour Demand in the United Kingdom

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2011The effects at home of initiating production abroad: evidence from matched French firms 2007The impact of international outsourcing on individual employment security: A micro-level analysis 2007Does Offshoring Reduce Industry Employment?2011Does offshoring of materials and business services affect employment? Evidence from a small open economy 2009The impact of outward FDI on the home country's labour demand and skill composition

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