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Appears in Collections:Economics Working Papers
Peer Review Status: Unrefereed
Title: Offshoring and the Onshore Composition of Tasks and Skills
Author(s): Becker, Sascha
Ekholm, Karolina
Muendler, Marc-Andreas
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Citation: Becker S, Ekholm K & Muendler M (2009) Offshoring and the Onshore Composition of Tasks and Skills. Stirling Economics Discussion Paper, 2009-18.
Keywords: Trade in tasks
multinational enterprises
demand for labor
linked employer-employee data
JEL Code(s): F16
Issue Date: Aug-2009
Series/Report no.: Stirling Economics Discussion Paper, 2009-18
Abstract: We analyze the relationship between offshoring and the onshore workforce composition in German multinational enterprises (MNEs), using plant data that allow us to discern tasks, occupations, and workforce skills. Offshoring is associated with a statistically significant shift towards more non-routine and more interactive tasks, and with a shift towards highly educated workers. Moreover, the shift towards highly educated workers is in excess of what is implied by changes in either the task or the occupational composition. Whether offshored activities are located in low-income or high-income countries does not alter the direction of the relationship. We find offshoring to predict between 10 and 15 percent of observed changes in wage-bill shares of highly educated workers and measures of non-routine and interactive tasks.
Type: Working or Discussion Paper
Affiliation: Economics
Stockholm University
University of California, San Diego

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