Outsourcing and the Demand for Low-Skilled Labour in German Manufacturing: New Evidence

DIW Discussion Paper No. 313

22 Pages Posted: 15 May 2003

See all articles by Ingo Geishecker

Ingo Geishecker

Free University of Berlin (FUB) - Department of Business and Economics

Date Written: November 2002

Abstract

This paper analyses how international outsourcing has affected the relative demand for low skilled workers in Germany during the 1990s. In contrast to previous empirical work, the single elements of the input-output-matrix are used to disentangle international outsourcing and trade in final goods more accurately. The main finding is that during the 1990s international outsourcing had a significant negative impact on the relative demand for low-skilled workers, explaining between 19% and 24% of the overall decline in the relative demand for low-skilled labour.

Keywords: international trade, outsourcing, skill-bias, labour demand

JEL Classification: F20, J31, J23

Suggested Citation

Geishecker, Ingo, Outsourcing and the Demand for Low-Skilled Labour in German Manufacturing: New Evidence (November 2002). DIW Discussion Paper No. 313, Available at SSRN: https://ssrn.com/abstract=381383 or http://dx.doi.org/10.2139/ssrn.381383

Ingo Geishecker (Contact Author)

Free University of Berlin (FUB) - Department of Business and Economics ( email )

Boltzmannstrasse 20
D-14195 Berlin, 14195
Germany

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