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

This object is provided by:
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

Other Objects (12)