DP5648 The Effect of Offshoring on Labour Demand: Evidence from Sweden
|Author(s):||Karolina Ekholm, Katariina Hakkala|
|Publication Date:||April 2006|
|Keyword(s):||factor-biased technological change, labour demand, offshoring, translog cost function|
|Programme Areas:||International Trade and Regional Economics|
|Link to this Page:||cepr.org/active/publications/discussion_papers/dp.php?dpno=5648|
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.