How Offshoring Can Affect the Industries' Skill Composition

20 Pages Posted: 6 Apr 2011

See all articles by Daniel Horgos

Daniel Horgos

University of the German Federal Armed Forces - Department of Economics

Lucia Tajoli

Politecnico di Milano - Dipartimento di Ingegneria Gestionale

Date Written: July 1, 2010

Abstract

While most offshoring literature focus on the effects on relative wages, other implications do not receive the necessary attention. This paper investigates effects on the industries’ skill ratio. It summarizes the empirical literature, discusses theoretical findings, and provides first empirical evidence for Germany. As results show, effects are mainly driven by the industry where offshoring takes place. In high skill intensive industries, the high skill labor ratio increases (vice versa for low skill intensive industries). Since this result is inline with other empirical findings but seems to contradict with theory, the paper additionally discusses possible explanations.

Keywords: offshoring, labor market implications, skill ratio, skill composition

JEL Classification: F16, J21

Suggested Citation

Horgos, Daniel and Tajoli, Lucia, How Offshoring Can Affect the Industries' Skill Composition (July 1, 2010). Centro Studi Luca d'Agliano Development Studies Working Paper No. 296, Available at SSRN: https://ssrn.com/abstract=1803456 or http://dx.doi.org/10.2139/ssrn.1803456

Daniel Horgos (Contact Author)

University of the German Federal Armed Forces - Department of Economics ( email )

Holstenhofweg 85
Hamburg, 22043
Germany

Lucia Tajoli

Politecnico di Milano - Dipartimento di Ingegneria Gestionale ( email )

via Lambruschini 4b
Milan, 20156
Italy
++390223992752 (Phone)

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
36
Abstract Views
610
PlumX Metrics