scholarly journals Does Offshoring Reduce Industry Employment?

2007 ◽  
Vol 201 ◽  
pp. 86-96 ◽  
Author(s):  
Alexander Hijzen ◽  
Paul Swaim

This paper looks at the implications of offshoring for industry employment whilst explicitly accounting for the scale and technology effects of offshoring. The effects of offshoring on employment are analysed using industry-level data for 17 high income OECD countries. Our findings indicate that offshoring has no effect or a slight-positive effect on sectoral employment. Offshoring within the same industry (intra-industry offshoring) reduces the labour-intensity of production, but does not affect overall industry employment. Inter-industry offshoring does not affect labour-intensity, but may have a positive effect on overall industry employment. These finding suggest that the productivity gains from offshoring are sufficiently large that the jobs created by higher sales completely offset the jobs lost by relocating certain production stages to foreign production sites.

2019 ◽  
Vol 28 (6) ◽  
pp. 1497-1513 ◽  
Author(s):  
Gaétan de Rassenfosse ◽  
Russell Thomson

Abstract Offshoring research and development (R&D) commonly invokes concerns regarding the loss of high value jobs and a hollowing out of technological capabilities, but it can also benefit domestic firms by enabling them to tap into the global technological frontier. We study the effect of R&D offshoring on industrial productivity in the home country using industry-level data for 18 OECD countries over a 26-year period. Simultaneity between productivity and R&D offshoring is addressed by using foreign tax policy as an instrument for offshored R&D. We show that R&D offshoring contributes positively to productivity in the home country, irrespective of the host country destination.


2017 ◽  
Vol 44 (4) ◽  
pp. 558-575 ◽  
Author(s):  
Andrew T. Young ◽  
Hernando Zuleta

2010 ◽  
Vol 2 (2) ◽  
pp. 259-287 ◽  
Author(s):  
Steven J Davis ◽  
R. Jason Faberman ◽  
John Haltiwanger ◽  
Ron Jarmin ◽  
Javier Miranda

Unemployment inflows fell from 4 percent of employment per month in the early 1980s to 2 percent by the mid 1990s. Using low frequency movements in industry-level data, we estimate that a 1 percentage point drop in the quarterly job destruction rate lowers the monthly unemployment inflow rate by 0.28 points. By our estimates, declines in job destruction intensity account for 28 (55) percent of the fall in unemployment inflows from 1982 (1990) to 2005. Slower job destruction accounts for similar fractions of long-term declines in the rate of unemployment. (JEL E24, E32, J64)


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