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Open AccessArticle

How Offshoring Can Affect the Industries’ Skill Composition

Department of Economics, Helmut Schmidt University, University FAF Hamburg, Holstenhofweg 85, 22043 Hamburg, Germany
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
Economies 2015, 3(2), 72-99;
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)
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
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Horgos, D.; Tajoli, L. How Offshoring Can Affect the Industries’ Skill Composition. Economies 2015, 3, 72-99.

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