The Effect of Offshoring on Labour Demand: Evidence from Sweden

38 Pages Posted: 20 Jul 2006

See all articles by Karolina Ekholm

Karolina Ekholm

Stockholm School of Economics - Department of Economics; Centre for Economic Policy Research (CEPR); Center for Business and Policy Studies (SNS); CESifo (Center for Economic Studies and Ifo Institute)

Katariina Hakkala

Research Institute of Industrial Economics (IFN)

Date Written: April 2006

Abstract

We analyze the effects of offshoring of intermediate input production on labour demand in Sweden, distinguishing between workers with different educational attainments. The econometric results using data for the 1995-2000 period indicate that offshoring - in particular to low-income countries - tends to shift labour demand away from workers with an intermediate level of education. Offshoring to high-income countries, which is the largest component of overall offshoring, does not have any statistically significant effect on the composition of labour demand.

Keywords: Offshoring, labour demand, translog cost function, factor-biased technological change

JEL Classification: F16

Suggested Citation

Ekholm, Karolina and Hakkala, Katariina, The Effect of Offshoring on Labour Demand: Evidence from Sweden (April 2006). Available at SSRN: https://ssrn.com/abstract=918490

Karolina Ekholm (Contact Author)

Stockholm School of Economics - Department of Economics ( email )

P.O. Box 6501
Sveavagen 65
S-113 83 Stockholm
Sweden
+46 8 736 9220 (Phone)
+46 8 313 207 (Fax)

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Center for Business and Policy Studies (SNS)

Skoldungagatan 2, Box 5629
S-114 86 Stockholm
Sweden

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

Katariina Hakkala

Research Institute of Industrial Economics (IFN) ( email )

Grevgatan 34, 2nd floor
S-114 85 Stockholm, SE-102 15
Sweden

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