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Economies 2015, 3(2), 72-99; doi:10.3390/economies3020072

How Offshoring Can Affect the Industries’ Skill Composition

1
Department of Economics, Helmut Schmidt University, University FAF Hamburg, Holstenhofweg 85, 22043 Hamburg, Germany
2
Dipartimento di Ingegneria Gestionale, Politecnico di Milano, via Lambruschini 4/b, 20156 Milano, Italy
*
Author to whom correspondence should be addressed.
Academic Editor: Devashish Mitra
Received: 6 February 2014 / Revised: 5 May 2015 / Accepted: 7 May 2015 / Published: 15 May 2015
(This article belongs to the Special Issue Globalization and Inequality)
View Full-Text   |   Download PDF [331 KB, uploaded 15 May 2015]   |  

Abstract

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. View Full-Text
Keywords: offshoring; labor market implications; skill ratio; skill composition offshoring; labor market implications; skill ratio; skill composition
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. (CC BY 4.0).

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MDPI and ACS Style

Horgos, D.; Tajoli, L. How Offshoring Can Affect the Industries’ Skill Composition. Economies 2015, 3, 72-99.

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