Based on firm level data for the Swedish manufacturing sector the objective of this paper is to analyze relative labor demand effects due to offshoring. Actual firm-level trade data allow us to distinguish between goods and service offshoring, as well as sourcing country. Overall, our results give no support to the fears that offshoring of goods or services lead to out-location of high-skilled activity in Swedish firms. Rather, this paper finds robust evidence that the aggregate effects from offshoring lead to increasing relative demand of high-skilled labor, mainly due to serviceoffshoring to middle income countries.
This paper is published
Andersson, L., Karpaty, P., & Savsin, S. (2016). Firm-level effects of offshoring of materials and services on relative labor demand. Review of World Economics, , 1-30. doi:10.1007/s10290-015-0243-8