The spillover effect of services offshoring on local labour markets

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:	11 Sep 2025 05:07
URI:	http://eprints.lse.ac.uk/id/eprint/118048

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