Offshoring, Wages and Job Security of Temporary Workers
36 Pages Posted: 30 Nov 2012
Date Written: November 1, 2012
Abstract
We investigate the impact of offshoring on individual level wages and unemployment probabilities and pay particular attention to the question of whether workers on temporary contracts are affected differently than workers on permanent contracts. Data are taken from the German Socio-Economic Panel (SOEP), linked with industry-level data on offshoring of materials and services inputs calculated from the World Input Output Database (WIOD). In manufacturing we find that temporary workers face a significant reduction in wages as materials offshoring increases, while permanent workers’ wages are unaffected or even tend to increase. Offshoring of core activities generally also tends to reduce the probability of becoming unemployed, and more so for temporary than for permanent workers. By contrast, offshoring of services inputs does not have any statistically significant effects on either wages or employment probabilities in manufacturing. In the service industries, workers are affected in terms of employment probabilities from offshoring of services inputs only, although, in contrast to manufacturing industries, there are no statistically significant effects on individual wages from any type of offshoring.
Suggested Citation: Suggested Citation
Do you have a job opening that you would like to promote on SSRN?
Recommended Papers
-
Consequences of Employment Protection? the Case of the Americans with Disabilities Act
By Daron Acemoglu and Joshua D. Angrist
-
Temporary Jobs: Stepping Stones or Dead Ends?
By Alison L. Booth, Marco Francesconi, ...
-
Temporary Jobs, Employment Protection and Labor Market Performance
By Pierre Cahuc and Fabien Postel-vinay
-
The Cost of Job Security Regulation: Evidence from Latin American Labor Markets
By James J. Heckman and Carmen Pages
-
Why Do Temporary Help Firms Provide Free General Skills Training?
-
Drawing Lessons from the Boom of Temporary Jobs in Spain
By Juan Jose Dolado, Carlos García Serrano, ...
-
Drawing Lessons from the Boom of Temporary Jobs in Spain
By Juan F. Jimeno, Juan Jose Dolado, ...
-
Why Do Temporary Help Firms Provide Free General Skills Training?