Working Paper: CEPR ID: DP5648
Authors: Karolina Ekholm; Katariina Hakkala
Abstract: We analyze the effects of offshoring of intermediate input production on labour 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 labour 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 labour demand.
Keywords: Factor-biased technological change; Labour demand; Offshoring; Translog cost function
JEL Codes: F16
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| offshoring to low-income countries (F66) | demand for workers with secondary education (J24) |
| offshoring to high-income countries (F29) | labor demand composition (J29) |
| offshoring to low-income countries (F66) | demand for workers with tertiary education (J24) |
| offshoring to Central and Eastern Europe (F29) | labor demand (J23) |