How Offshoring Can Affect the Industries’ Skill Composition

While most of the offshoring literature focuses on the effects on relative wages, other implications do not receive the necessary attention. This paper investigates the effects on the industries’ skill ratio. It summarizes the empirical literature, discusses theoretical findings, and provides empiri...

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Main Authors: Daniel Horgos, Lucia Tajoli
Format: Article
Language:English
Published: MDPI AG 2015-05-01
Series:Economies
Subjects:
Online Access:http://www.mdpi.com/2227-7099/3/2/72
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author Daniel Horgos
Lucia Tajoli
author_facet Daniel Horgos
Lucia Tajoli
author_sort Daniel Horgos
collection DOAJ
description While most of the offshoring literature focuses on the effects on relative wages, other implications do not receive the necessary attention. This paper investigates the effects on the industries’ skill ratio. It summarizes the empirical literature, discusses theoretical findings, and provides empirical evidence for Germany. As results show, effects are mainly driven by the industry where offshoring takes place. If offshoring takes place in high-skill intensive industries, the high-skill labor ratio increases (vice versa if offshoring takes place in low-skill intensive industries). Results are in line with other empirical findings, however, they seem to contradict theoretical causalities. Thus, we additionally discuss possible explanations.
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spelling doaj.art-ba89ac51a3eb4d10937ede17b8d72d872022-12-22T02:17:57ZengMDPI AGEconomies2227-70992015-05-0132729910.3390/economies3020072economies3020072How Offshoring Can Affect the Industries’ Skill CompositionDaniel Horgos0Lucia Tajoli1Department of Economics, Helmut Schmidt University, University FAF Hamburg, Holstenhofweg 85, 22043 Hamburg, GermanyDipartimento di Ingegneria Gestionale, Politecnico di Milano, via Lambruschini 4/b, 20156 Milano, ItalyWhile most of the offshoring literature focuses on the effects on relative wages, other implications do not receive the necessary attention. This paper investigates the effects on the industries’ skill ratio. It summarizes the empirical literature, discusses theoretical findings, and provides empirical evidence for Germany. As results show, effects are mainly driven by the industry where offshoring takes place. If offshoring takes place in high-skill intensive industries, the high-skill labor ratio increases (vice versa if offshoring takes place in low-skill intensive industries). Results are in line with other empirical findings, however, they seem to contradict theoretical causalities. Thus, we additionally discuss possible explanations.http://www.mdpi.com/2227-7099/3/2/72offshoringlabor market implicationsskill ratioskill composition
spellingShingle Daniel Horgos
Lucia Tajoli
How Offshoring Can Affect the Industries’ Skill Composition
Economies
offshoring
labor market implications
skill ratio
skill composition
title How Offshoring Can Affect the Industries’ Skill Composition
title_full How Offshoring Can Affect the Industries’ Skill Composition
title_fullStr How Offshoring Can Affect the Industries’ Skill Composition
title_full_unstemmed How Offshoring Can Affect the Industries’ Skill Composition
title_short How Offshoring Can Affect the Industries’ Skill Composition
title_sort how offshoring can affect the industries skill composition
topic offshoring
labor market implications
skill ratio
skill composition
url http://www.mdpi.com/2227-7099/3/2/72
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