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The impact of service and goods offshoring on employment: Firm-level evidence. National Bank of Belgium Working Paper No. 319

Ornaghi, Carmine and Van Beveren, Ilke and Vanormelingen, Stijn (2017) The impact of service and goods offshoring on employment: Firm-level evidence. National Bank of Belgium Working Paper No. 319. [Working Paper]

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    Abstract

    Advances in communication technology have led to a remarkable increase in the tradability of services, resulting in a substantial increase in offshoring of services over the last two decades. Research investigating how this surge in service offshoring affects employment, has been largely hampered by the paucity of suitable microdata. This paper tries to fill this gap by using a newly constructed database of Belgian firms that combines individual transaction-level data on international trade in goods and services with annual financial accounts. This unusually rich dataset allows us to produce fresh evidence on the impact of goods and service offshoring on total employment and employment by educational levels for both manufacturing industries and the service sectors. Our results show that: (i) goods offshoring has a positive impact on employment growth among workers with both low and high levels of education in the manufacturing industry but this effect disappears when controlling for scale effects; and (ii) service offshoring has a negative impact on employment growth among highly educated workers in the service sectors. This novel evidence suggests that globalization may threaten job security of higher educated workers too.

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    Item Type: Working Paper
    Uncontrolled Keywords: Offshoring, trade in services, labour markets
    Subjects for non-EU documents: EU policies and themes > Policies & related activities > employment/labour market
    Countries > Belgium
    EU policies and themes > Policies & related activities > economic and financial affairs > Single Market > capital, goods, services, workers
    Subjects for EU documents: UNSPECIFIED
    EU Series and Periodicals: UNSPECIFIED
    EU Annual Reports: UNSPECIFIED
    Series: Series > National Bank of Belgium (Brussels) > Working Papers
    Depositing User: Phil Wilkin
    Official EU Document: No
    Language: English
    Date Deposited: 12 Sep 2019 11:01
    Number of Pages: 56
    Last Modified: 12 Sep 2019 11:03
    URI: http://aei.pitt.edu/id/eprint/97459

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