Domestic Effects of Offshoring High‐Skilled Jobs: Complementarities in Knowledge Production

20 Pages Posted: 4 Jan 2017

See all articles by Laura Abramovsky

Laura Abramovsky

Institute for Fiscal Studies (IFS)

Rachel Griffith

Institute for Fiscal Studies (IFS); University of Manchester; Centre for Economic Policy Research (CEPR)

Helen Miller

Institute for Fiscal Studies (IFS)

Date Written: February 2017

Abstract

We provide evidence on how changes in the use of high‐skilled workers (inventors) in a foreign location affect a firm's domestic use of the same type of worker. We exploit rich data that provide variation in the location of inventors within multinational firms across industries and countries to control for confounding firm–time and industry factors. We find that a 10% increase in the use of foreign inventors leads to a 1.9% increase in the use of domestic inventors. Our results suggest that foreign and domestic inventors are complementary in the production of knowledge.

Suggested Citation

Abramovsky, Laura and Griffith, Rachel and Miller, Helen, Domestic Effects of Offshoring High‐Skilled Jobs: Complementarities in Knowledge Production (February 2017). Review of International Economics, Vol. 25, Issue 1, pp. 1-20, 2017. Available at SSRN: https://ssrn.com/abstract=2893384 or http://dx.doi.org/10.1111/roie.12242

Laura Abramovsky (Contact Author)

Institute for Fiscal Studies (IFS) ( email )

7 Ridgmount Street
London, WC1E 7AE
United Kingdom

Rachel Griffith

Institute for Fiscal Studies (IFS) ( email )

7 Ridgmount Street
London WC1E 7AE
United Kingdom
+44 20 7291 4800 (Phone)
+44 20 7323 4780 (Fax)

University of Manchester ( email )

Arthur Lewis Building
Oxford Road
Manchester, M13 9PL
United Kingdom

HOME PAGE: http://www.ifs.org.uk/people/profile?id=37

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Helen Miller

Institute for Fiscal Studies (IFS) ( email )

7 Ridgmount Street
London, WC1E 7AE
United Kingdom

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