Service offshoring and the skill composition of labour demand

Oxford Bulletin of Economics and Statistics

Volumn 74, Issue 1, 2012, Pages 20-57

  Crinò, Rosario ^a  

^a CSIC   (Spain)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 84855464591     PISSN: 03059049     EISSN: 14680084     Source Type: Journal    
DOI: 10.1111/j.1468-0084.2010.00634.x     Document Type: Article

References (66)

1. Amiti, M. and Wei, S. J. (2005). 'Fear of service outsourcing: is it justified?' Economic Policy, Vol. 20, pp. 308-347.
2. Amiti, M. and Wei, S. J. (2009). 'Service offshoring and productivity: evidence from the US', World Economy, Vol. 32, pp. 203-220.
3. Antras, P., Garicano, L. and Rossi-Hansberg, E. (2006). 'Offshoring in a knowledge economy', Quarterly Journal of Economics, Vol. 121, pp. 31-77.
4. Arellano, M. and Bond, S. (1991). 'Some tests of specification for panel data: Monte Carlo evidence and an application to employment equations', Review of Economic Studies, Vol. 58, pp. 277-297.
5. Baldwin, R. (2006). Globalization: The Great Unbundling(s), Mimeo, Graduate Institute of International Studies, Geneva.
6. Baldwin, R. and Robert-Nicoud, F. (2007). Offshoring: General Equilibrium Effects on Wages, Production and Trade, National Bureau of Economic Research, Working Paper No. 12991, Cambridge, MA.
7. Becker, S. O., Ekholm, K. and Muendler, M. (2009). Offshoring and the Onshore Composition of Tasks and Skills, Center for Economic Policy Research, Discussion Paper No. 7391, London.
8. Berman, E., Bound, J. and Griliches, Z. (1994). 'Changes in the demand for skilled labour within U.S. manufacturing: evidence from the annual survey of manufactures', Quarterly Journal of Economics, Vol. 109, pp. 367-397.
9. Berndt, E. R. (1991). The Practice of Econometrics, Classic and Contemporary, Addison-Wesley, Reading, MA.
10. Bhagwati, J., Panagariya, A. and Srinivasan, T. N. (2004). 'The muddles over outsourcing', Journal of Economic Perspectives, Vol. 18, pp. 93-114.
11. Blinder, A. S. (2006). Offshoring: the next industrial revolution? Foreign Affairs, March/April, pp. 113-128.
12. Blinder, A. S. (2009). 'How Many U.S. Jobs Might Be Offshorable?' World Economics, Vol. 10, pp. 41-78.
13. Blinder, A. S. and Krueger, A. B. (2009). Alternative Measures of Offshorability: A Survey Approach, National Bureau of Economic Research, Working Paper No. 15287, Cambridge, MA.
14. Cornwell, C., Schmidt, P. and Wyhowski, D. (1992). 'Simultaneous equations and panel data', Journal of Econometrics, Vol. 51, pp. 151-181.
15. Crinò, R. (2008). 'Service offshoring and productivity in Western Europe', Economics Bulletin, Vol. 6, pp. 1-8.
16. Crinò, R. (2009). 'Offshoring, multinationals and labour market: a review of the empirical literature', Journal of Economic Surveys, Vol. 23, pp. 197-249.
17. Crinò, R. (2010). 'Service offshoring and white-collar employment', Review of Economic Studies, Vol. 77, pp. 595-632.
18. Deardorff, A. V. (2005). 'A trade theorist's take on skilled-labour outsourcing', International Review of Economics and Finance, Vol. 14, pp. 259-271.
19. Docquier, F., Lowell, B. L. and Marfouk, A. (2009). 'A gendered assessment of highly skilled emigration', Population and Development Review, Vol. 35, pp. 297-322.
20. Ekholm, K. and Hakkala, K. (2005). The Effect of Offshoring on Labour Demand: Evidence from Sweden, Center for Economic Policy Research, Working Paper No. 5648, London.
21. Epifani, P. and Gancia, G. (2006). 'Increasing returns, imperfect competition, and factor prices', Review of Economics and Statistics, Vol. 88, pp. 583-598.
22. Epifani, P. and Gancia, G. (2008). 'The skill bias of world trade', Economic Journal, Vol. 118, pp. 927-960.
23. Eurostat (2004). European Demography in 2003. Available at:.
24. Falk, M. and Koebel, B. M. (2001). 'A dynamic heterogeneous labour demand model for German manufacturing', Applied Economics, Vol. 33, pp. 339-348.
25. Falk, M. and Koebel, B. M. (2002). 'Outsourcing, imports and labour demand', Scandinavian Journal of Economics, Vol. 104, pp. 567-586.
26. Feenstra, R. C. and Hanson, G. H. (1996). 'Globalization, outsourcing and wage inequality', American Economic Review, Vol. 86, pp. 240-245.
27. Feenstra, R. C. and Hanson, G. H. (1999). 'The impact of outsourcing and high-technology capital on wages: estimates for the United States, 1979-1990. Quarterly Journal of Economics, 114, pp. 907-940.
28. Feenstra, R. C. and Hanson, G. H. (2003). 'Global production sharing and rising inequality: a survey of trade and wages', in Choi K. and Harrigan J.(eds), Handbook of International Economics, Blackwell Publishing, Malden, USA; Oxford, UK; and Victoria, Australia, pp. 146-185.
29. Freeman, R. B. and Katz, L. F. (1995). Differences and Changes in Wage Structures, NBER Comparative Labour Markets Series, Cambridge, MA.
30. Freund, C. and Weinhold, D. (2002). 'The internet and international trade in services', American Economic Review, Papers and Proceedings, Vol. 92, pp. 236-240.
31. Geishecker, I. and Görg, H. (2008a). Service Offshoring and Wages: Evidence from Micro Data, IZA, Discussion Paper No. 3593, Bonn.
32. Geishecker, I. and Görg, H. (2008b). 'Winners and losers: a micro-level analysis of international outsourcing and wages', Canadian Journal of Economics, Vol. 41, pp. 243-270.
33. Görg, H. and Hanley, A. (2005). 'Labour demand effects of international outsourcing: evidence from plant-level data', International Review of Economics and Finance, Vol. 14, pp. 365-376.
34. Görg, H. and Hanley, A. (2009). Services Outsourcing and Innovation: An Empirical Investigation, Center for Economic Policy Research, Discussion Paper No. 7390, London.
35. Görg, H., Hanley, A. and Strobl, E. (2008). 'Productivity effects of international outsourcing: evidence from plant-level data', Canadian Journal of Economics, Vol. 41, pp. 670-688.
36. Griliches, Z. and Hausman, J. (1986). 'Errors in variables in panel data', Journal of Econometrics, Vol. 31, pp. 93-118.
37. Grossman, G. M. and Rossi-Hansberg, E. (2008). 'Trading tasks: a simple theory of offshoring', American Economic Review, Vol. 98, pp. 1978-1997.
38. Head, K., Mayer, T. and Ries, J. (2008). 'How remote is the offshoring threat?' European Economic Review, Vol. 53, pp. 429-444.
39. Helpman, E. (2006). 'Trade, FDI, and the organization of firms', Journal of Economic Literature, Vol. 44, pp. 580-630.
40. Hijzen, A. (2005). 'A bird's eye view of international outsourcing: data, measurement and labour demand effects', Economie Internationale, Vol. 104, pp. 45-63.
41. Hijzen, A. and Swaim, P. (2007). Does offshoring Reduce Industry Employment? Leverhulme Centre for Research on Globalization and Economic Policy, Research Paper No. 2007/24, University of Nottingham.
42. Hijzen, A., Görg, H. and Hine, R. C. (2005). 'International outsourcing and the skill structure of labour demand in the United Kingdom', Economic Journal, Vol. 115, pp. 860-878.
43. Hijzen, A., Inui, T. and Todo, Y. (2010). 'Does offshoring pay? Firm-level evidence from Japan', Economic Inquiry, Vol. 48, pp. 880-895.
44. Hijzen, A., Pisu, M., Upward, R. and Wright, P. (2007). Employment, Job Turnover, and the Trade in Producer Services: Firm-Level Evidence, Leverhulme Centre for Research on Globalization and Economic Policy, Research Paper No. 2007/37, University of Nottingham.
45. Jensen, B. J. and Kletzer, L. (2005). 'Tradeable services: understanding the scope and impact of services offshoring', in Brainard L. and Collins S. M.(eds), Offshoring White-Collar Work - The Issues and the Implications, Brookings Trade Forum 2005, Washington, DC, pp. 73-133.
46. Jensen, B. J. and Kletzer, L. (2008). 'Measuring tradeable services and the task content of offshorable services jobs', in Abraham K., Harper M. and Spletzer J. (eds), Labour in the New Economy, University of Chicago Press, Chicago and London, pp. 309-342.
47. Kirkegaard, J. F. (2004). Outsourcing - Stains on the White-Collar? Mimeo, Peterson Institute for International Economics, Washington, DC.
48. Kodde, D. A. and Palm, F. C. (1987). 'A parametric test of the negativity of the substitution matrix', Journal of Applied Econometrics, Vol. 2, pp. 227-235.
49. Levy, F. and Murname, R. J. (2004). The New Division of Labour: How Computers are Creating the Next Job Market, Princeton University Press, Princeton.
50. Liu, R. and Trefler, D. (2008). Much Ado About Nothing: American Jobs and the Rise of Service Outsourcing to China and India, National Bureau of Economic Research, Working Paper No. 14061, Cambridge, MA.
51. Machin, S. and Van Reenen, J. (1998). 'Technology and changes in skill structure: evidence from seven OECD countries', Quarterly Journal of Economics, Vol. 113, pp. 1215-1244.
52. Mankiw, G. N. and Swagel, P. (2006). 'The politics and economics of offshore outsourcing', Journal of Monetary Economics, Vol. 53, pp. 1027-1056.
53. Markusen, J. (2005). 'Modeling the offshoring of white-collar services: from comparative advantage to the new theories of trade and FDI', in Brainard L. and Collins S. M. (eds), Offshoring White-Collar Work - The Issues and the Implications, Brookings Trade Forum 2005, Washington, DC, pp. 1-34.
54. Markusen, J. and Strand, B. (2008). 'Offshoring of business services in small open economies: toward a general-equilibrium modeling approach', Journal of Industry, Competition and Trade, Vol. 8, pp. 231-246.
55. Morrison, C. and Siegel, D. (2001). 'The impacts of technology, trade and outsourcing on employment and labour composition', Scandinavian Journal of Economics, Vol. 103, pp. 241-264.
56. Nickell, W. (2006). The CEP-OECD Institutions Data Set (1960-2004), CEP Discussion Paper No. 759, Centre for Economic Performance, London School of Economics and Political Science, London.
57. OECD (2005). 'Trade-adjustment costs in OECD labour markets: a mountain or a molehill?' in OECD Employment Outlook, Paris and Washington, DC, OECD, pp. 23-72.
58. OECD (2007). Offshoring and Employment: Trends and Impacts, OECD, Paris/Washington, DC.
59. Rodriguez, C. A. (2010). 'Offshoring in a Ricardian world', American Economic Journal Macroeconomics, Vol. 2, pp. 227-258.
60. Samuelson, P. A. (2004). 'Where Ricardo and Mill Rebut and confirm arguments of mainstream economists supporting globalization', Journal of Economic Perspectives, Vol. 18, pp. 135-146.
61. Shea, J. (1997). 'Instrument relevance in multivariate linear models: a simple measure', Review of Economics and Statistics, Vol. 79, pp. 348-352.
62. Staiger, D. and Stock, J. H. (1997). 'Instrumental variables regression with weak instruments', Econometrica, Vol. 65, pp. 557-586.
63. Timmer, M., Van Moergastel, T., Stuivenwold, E., Ypma, G., O'Mahony, M. and Kangasniemi, M. (2007). EUKLEMS Growth and Productivity Accounts: Methodology (Part 1), Mimeo. Available at:.
64. Trefler, D. (2005). 'Offshoring: threats and opportunities', in Brainard L. and Collins S. M. (eds), Offshoring White-Collar Work - The Issues and the Implications, Brookings Trade Forum 2005, Washington, DC, pp. 35-73.
65. UNCTAD (2004). World Investment Report: The Shift Towards Services, United Nations, New York/Geneva.
66. Zellner, A. (1962). 'An efficient method of estimating seemingly unrelated regressions and tests for aggregation bias', Journal of the American Statistical Association, Vol. 57, pp. 348-368.