Discussion Paper Details

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Title: The Effect of Offshoring on Labour Demand: Evidence from Sweden

Author(s): Karolina Ekholm and Katariina Hakkala

Publication Date: April 2006

Keyword(s): factor-biased technological change, labour demand, offshoring and translog cost function

Programme Area(s): International Trade and Regional Economics

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.

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Bibliographic Reference

Ekholm, K and Hakkala, K. 2006. 'The Effect of Offshoring on Labour Demand: Evidence from Sweden'. London, Centre for Economic Policy Research.