We Can Work it Out - the Globalisation of Ict-Enabled Services

29 Pages Posted: 5 Jan 2007 Last revised: 3 Nov 2010

See all articles by Desiree van Welsum

Desiree van Welsum

Organization for Economic Co-Operation and Development (OECD)

Xavier Reif

National Institute of Statistics and Economic Studies (INSEE)

Date Written: December 2006

Abstract

This paper examines the relationship between the share of employment potentially affected by offshoring and economic and structural factors, including trade in business services and foreign direct investment (FDI), using simple descriptive regressions for a panel of OECD economies between 1996 and 2003. It tests whether there are differences in the factors driving the shares of potentially offshorable "non-clerical" and clerical occupations in total employment. The results show a positive statistical association between the share of both "non-clerical" and clerical occupations potentially affected by offshoring and exports of business services, and a negative association with imports of business services. However, the results also show important differences between different types of occupations as they behave differently over time, and are affected differently by variables included in the model. In particular, net outward manufacturing FDI, ICT investment, and the relative size of the services sector all have a positive association with the share of potentially offshorable "non-clerical" occupations, but are negative with clerical occupations. Union density has a positive statistical association with clerical occupations but negative with "non-clerical" occupations. These results have important implications for policy, as they clearly suggest that different factors are driving the performance of different occupational groups.

Suggested Citation

van Welsum, Desiree and Reif, Xavier, We Can Work it Out - the Globalisation of Ict-Enabled Services (December 2006). NBER Working Paper No. w12799. Available at SSRN: https://ssrn.com/abstract=955232

Desiree Van Welsum (Contact Author)

Organization for Economic Co-Operation and Development (OECD) ( email )

2 rue Andre Pascal
Paris Cedex 16, 75775
France

Xavier Reif

National Institute of Statistics and Economic Studies (INSEE) ( email )

18, Boulevard Adolphe-Pinard
75675 Paris Cedex 14
France

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