On the Heterogeneous Employment Effects of Offshoring: Identifying Productivity and Downsizing Channels

20 Pages Posted: 21 Nov 2014

See all articles by Christoph Moser

Christoph Moser

ETH Zürich - KOF Swiss Economic Institute

Dieter M. Urban

Johannes Gutenberg University of Mainz - Institute for International Economic Theory; CESifo (Center for Economic Studies and Ifo Institute)

Beatrice Weder di Mauro

Graduate Institute Geneva, IHEID; Graduate Institute Geneva, IHEID

Date Written: January 2015

Abstract

This article examines the channels through which offshoring affects employment in a representative sample of German establishments, using a difference‐in‐differences matching approach. Offshoring is measured by an increase in the share of foreign to total intermediate inputs at the plant‐level. We identify a positive productivity effect and isolate a negative downsizing effect from offshoring on employment, by exploiting differences between offshoring plants that do and do not simultaneously restructure. Furthermore, we cannot find evidence of negative indirect employment effects on domestic suppliers or competitors.

JEL Classification: F16, J23, F23, C21

Suggested Citation

Moser, Christoph and Urban, Dieter M. and Weder di Mauro, Beatrice and Weder di Mauro, Beatrice, On the Heterogeneous Employment Effects of Offshoring: Identifying Productivity and Downsizing Channels (January 2015). Economic Inquiry, Vol. 53, Issue 1, pp. 220-239, 2015, Available at SSRN: https://ssrn.com/abstract=2528836 or http://dx.doi.org/10.1111/ecin.12124

Christoph Moser (Contact Author)

ETH Zürich - KOF Swiss Economic Institute ( email )

Zurich
Switzerland

Dieter M. Urban

Johannes Gutenberg University of Mainz - Institute for International Economic Theory ( email )

D 55099 Mainz
Germany

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

Beatrice Weder di Mauro

Graduate Institute Geneva, IHEID ( email )

Chemin Eugene Rigot 2
Geneva, 1211
Switzerland

Graduate Institute Geneva, IHEID ( email )

Geneva Avenue de la Paix 11A
Geneva, 1202
Switzerland
1211 (Fax)

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