The Effect of Offshoring on Labour Demand: Evidence from Sweden

Karolina Ekholm · Katariina Nilsson Hakkala

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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 labour 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 labour 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 labour demand.

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