Arbeitspapier
The Internal and External Effects of Offshoring on Job Security
In this paper, we investigate the effects of offshoring on workers' job security using matched employer-employee data from Sweden. For our observed period (1997-2011), while the share of firms engaged in offshoring fell during the period from around 25% to 22%, offshoring per worker within offshoring firms almost doubled. We make use of this variation to contribute to the literature on several fronts by examining both the internal (i.e., firms' own offshoring activities) and the external (i.e., neighboring firms' offshoring activities) effects of offshoring on workers' employment spells. To deal with potential endogeneity, we use instruments based on world supply shocks for both the internal and external measures of offshoring. Our results suggest that external offshoring has a greater impact on job security than internal offshoring. In addition, having a university degree, being young, and being new to the job all reduce the risk of a job exit due to increased external offshoring. This result is indicative of a Schumpeterian job restructuring effect of offshoring, where old jobs are replaced by newer ones. Finally, the increased risk of a job exit from external offshoring is limited to workers in small firms that do not offshore themselves, suggesting a higher vulnerability of these firms to local shocks.
- Language
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Englisch
- Bibliographic citation
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Series: Working Paper ; No. 2017:14
- Classification
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Wirtschaft
Trade and Labor Market Interactions
Economic Impacts of Globalization: Labor
Unemployment: Models, Duration, Incidence, and Job Search
- Subject
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offshoring
heterogeneous firms
job security
globalization
- Event
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Geistige Schöpfung
- (who)
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El-Sahli, Zouheir
Gullstrand, Joakim
Olofsdotter, Karin
- Event
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Veröffentlichung
- (who)
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Lund University, School of Economics and Management, Department of Economics
- (where)
-
Lund
- (when)
-
2017
- Handle
- Last update
-
10.03.2025, 11:42 AM CET
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
- El-Sahli, Zouheir
- Gullstrand, Joakim
- Olofsdotter, Karin
- Lund University, School of Economics and Management, Department of Economics
Time of origin
- 2017
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