Working Paper Series
Karolina Ekholm and Katariina Hakkala
The Effect of Offshoring on Labor Demand: Evidence from Sweden
Abstract: We analyze the effects of offshoring of intermediate input
production on labor 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 labor 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 labor demand.
Keywords: Offshoring; Labor Demand; Translog Cost Function; Factor-Biased Technological Change; (follow links to similar papers)
JEL-Codes: F16; (follow links to similar papers)
40 pages, December 8, 2005
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