Arbeitspapier
Employment Effects of Outsourcing to Low Wage Countries. Empirical Evidence for EU Countries
This paper investigates the impact of international outsourcing on total employment using two-digit manufacturing data for seven EU countries for the period of 1995-2000. As is common in other empirical work, international outsourcing is measured as imports in intermediate imports. Estimates using OLS first differences show that imported materials from the same industry originating from low-wage countries have a significant and negative impact on total employment. The estimates suggest that rising intermediate imports from low-wage countries may account for an approximate reduction of 0.25 percentage points in employment per year. Sample split regressions show that the impact of imported materials from low-wage countries is statistically significant in industries with low skill intensity but not in skill intensive industries such as machinery, electrical, optical and transport equipment.
- Language
-
Englisch
- Bibliographic citation
-
Series: WIFO Working Papers ; No. 262
- Classification
-
Wirtschaft
Trade: General
Wage Level and Structure; Wage Differentials
- Subject
-
Trade in intermediate imports
labour demand
cross-country analysis
Outsourcing
Niedriglohn
Beschäftigungseffekt
Schätzung
EU-Staaten
- Event
-
Geistige Schöpfung
- (who)
-
Falk, Martin
Wolfmayr, Yvonne
- Event
-
Veröffentlichung
- (who)
-
Austrian Institute of Economic Research (WIFO)
- (where)
-
Vienna
- (when)
-
2005
- Handle
- Last update
-
08.09.2025, 2:44 PM CEST
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Falk, Martin
- Wolfmayr, Yvonne
- Austrian Institute of Economic Research (WIFO)
Time of origin
- 2005