Magli, Martina (2022) The spillover effect of services offshoring on local labour markets. CEP Discussion Papers (1892). London School of Economics and Political Science. Centre for Economic Performance, London, UK.
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Abstract
I provide new empirical evidence on the direct and indirect impact of services offshoring on local employment and wages, using a unique dataset on firms in the UK for the period 2000-2015. Exploiting variation in firms’ services offshoring across labour markets, I show positive aggregate local labour employment and wage elasticity to services offshoring. Spillovers from offshoring to non-offshoring firms explain the positive results, and services offshoring complementary to firms’ production has a larger effect than the offshoring competing with firms’ outputs. Finally, I show that services offshoring widens firms’ employment and wage dispersion within local labour markets.
| Item Type: | Monograph (Discussion Paper) |
|---|---|
| Official URL: | https://cep.lse.ac.uk/_new/publications/discussion... |
| Additional Information: | © 2022 The Author |
| Divisions: | Centre for Economic Performance |
| Subjects: | H Social Sciences > HD Industries. Land use. Labor H Social Sciences > HB Economic Theory |
| JEL classification: | F - International Economics > F1 - Trade > F10 - General F - International Economics > F1 - Trade > F16 - Trade and Labor Market Interactions J - Labor and Demographic Economics > J2 - Time Allocation, Work Behavior, and Employment Determination and Creation; Human Capital; Retirement > J20 - General |
| Date Deposited: | 27 Jan 2023 15:09 |
| Last Modified: | 15 Sep 2023 23:59 |
| URI: | http://eprints.lse.ac.uk/id/eprint/118048 |
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