Advertisement

Introduction

  • Deborah Winkler
Chapter
Part of the Contributions to Economics book series (CE)

Abstract

Since the new tradability of services has made services vulnerable to relocation, the public awareness of services offshoring and its potential labor market effects has increased strongly. People's uncertainty and ignorance about the effects of services offshoring on the domestic labor market often encounter pessimistic press articles and contradictory statements by CEOs, politicians, and economists. Therefore, measuring the influence of services offshoring on the German labor market is extremely important. Socially, this study meets the interest of wide parts of the population, whose jobs have become vulnerable to relocation. Scientifically, our study remedies the lack and deficiencies of economic studies on this subject. The first chapter introduces three kinds of labor market effects: productivity, employment, and employment structure. Section 1.1 presents the development of each labor market effect in Germany, which is followed by a literature survey of existing studies that relate this effect to offshoring. Deficiencies of existing research, notably the lack of studies on services offshoring, are pointed out, motivating our own empirical analysis. Section 1.2 outlines the structure, contents, and methodology of this work. Although our focus is put on the specific German case, many insights of our work are also applicable to other developed countries.

Keywords

Labor Market Total Factor Productivity Total Factor Productivity Growth Relative Demand Labor Market Effect 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

References

  1. Amiti M, Wei S-J (2005) Fear of service outsourcing: is it justified? Economic Policy 20(42):308–347CrossRefGoogle Scholar
  2. Amiti M, Wei S-J (2006) Service offshoring, productivity and employment: evidence from the US. CEPR Discussion Paper, No. 5475, February 2006Google Scholar
  3. Anderton B, Brenton P, Oscarsson E (2002) Outsourcing and inequality. CEPS Working Document, No. 187, October 2002Google Scholar
  4. Andrews, Edmund L (2004) Democrats criticize bush over job exports, New York Times, 11 February 2004, p. A26Google Scholar
  5. Bhagwati J, Panagariya A, Srinivasan TN (2004) The muddles over outsourcing. J Econ Perspect 18(4):93–114CrossRefGoogle Scholar
  6. Blinder AS (2007a) Free trade's great, but offshoring rattles me. Washington PostGoogle Scholar
  7. Blinder AS (2007b) How many U.S. jobs might be offshorable? CEPS Working Paper Princeton University, No. 142, March 2007Google Scholar
  8. Brown RS, Christensen LR (1981) Estimating elasticities of substitution in a model of partial static equilibrium: an application to US agriculture, 1947–1974. In: Berndt ER, Field BC (eds) Modeling and measuring natural resource substitution. MIT Press, Cambridge, MA, pp 209–229Google Scholar
  9. Der Spiegel (2007) Globalisierung: gewinner – verlierer. Der Spiegel, 23Google Scholar
  10. Ekholm K, Hakkala K (2006) The effect of offshoring on labour demand: evidence from Sweden. CEPR Discussion Paper, No. 5648, April 2006Google Scholar
  11. Falk M, Koebel BM (2002) Outsourcing, imports and labour demand. Scand J Econ 104(4):567–586CrossRefGoogle Scholar
  12. Farrel D (2004) Can Germany win from offshoring, July 2004. McKinsey Global InstituteGoogle Scholar
  13. Feenstra RC, Hanson GH (1996) Globalization, outsourcing and wage inequality. Am Econ Rev 86(2):240–245Google Scholar
  14. Feenstra RC, Hanson GH (1999) The impact of outsourcing and high-technology capital on wages: Estimates for the United States, 1979–1990. Quart J Econ 114(3):907–940CrossRefGoogle Scholar
  15. Feenstra RC, Hanson GH (2001) Global production sharing and rising inequality: a survey of trade and wages. NBER Working Paper, No. 8372, July 2001Google Scholar
  16. Geishecker I (2002) Outsourcing and the demand for low-skilled labour in German manufacturing: new evidence. DIW Discussion Paper, No. 313, November 2002Google Scholar
  17. Geishecker I (2006) Does outsourcing to central and eastern Europe really threaten Manual Workers' Jobs in Germany? The World Econ 29(5):559–583CrossRefGoogle Scholar
  18. Görg H, Hanley A (2003) International outsourcing and productivity: evidence from plant level data. Research Paper Series: globalisation, productivity and technology, No. 20/2003. University of NottinghamGoogle Scholar
  19. Görg H, Hanley A, Strobl E (2008) Productivity effects of international outsourcing: evidence from plant-level data. Can J Econ 41(2):670–688CrossRefGoogle Scholar
  20. Görzig B, Stephan A (2002) Outsourcing and firm-level performance. DIW Discussion Paper, No. 309, October 2002Google Scholar
  21. Grossman GM, Rossi-Hansberg E (2006a) The rise of offshoring: it's not wine for cloth anymore. Paper presented at The New Economic Geography: Effects and Policy Implications. Federal Reserve Bank of Kansas City, Jackson Hole, pp 59–102Google Scholar
  22. Grossman GM, Rossi-Hansberg E (2006b) Trading tasks: a simple theory of offshoring. NBER Working Paper, No. 12721, December 2006Google Scholar
  23. Hagemann H, Rukwid R (2007) Perspectives of workers with low qualifications in Germany under the pressures of globalization and technical progress. Hohenheim Discussion Papers, No. 291. University of Hohenheim, StuttgartGoogle Scholar
  24. Hamermesh D (1993) Labor demand. Princeton University Press, Princeton, NJGoogle Scholar
  25. Heshmati A (2003) Productivity growth, efficiency and outsourcing in manufacturing and service industries. J Econ Surv 17(1):79–112CrossRefGoogle Scholar
  26. Hijzen A, Görg H, Hine RC (2005) International outsourcing and the skill structure of labour demand in the United Kingdom. Econ J 115(506): 860–878CrossRefGoogle Scholar
  27. Hutzschenreuter T, Dressel S, Ressler W (2007). Offshoring von Zentralbereichen, Von den Erfahrungen deutscher und amerikanischer Unternehmen lernen. Springer, BerlinGoogle Scholar
  28. Landesmann M (2000). Migration und Arbeitsmarkteffekte der EU-Erweiterung. Die Union – Vierteljahreszeitschrift für Integrationsfragen 3:15–40Google Scholar
  29. Magenheim-Hörrmann T (2004) IG-Metall: 10,000 Arbeitsplätze bedroht. Stuttgarter Zeitung, 23 March 2004Google Scholar
  30. Mann C (2003) Globalization of IT services and white collar jobs: the next wave of productivity growth. Int Econ Policy Briefs, (PB03–11): Institute for International Economics. Retrieved from http://www.iie.com/publications/pb/pb03–11.pdf
  31. McKinsey Global Institute (2005) How offshoring of services could benefit France, June 2005: McKinsey Global InstituteGoogle Scholar
  32. O'Mahony M, van Ark B (2003) EU productivity and competitiveness: an industry perspective can Europe resume the catching-up process? Luxembourg: Office for Official Publications of the European CommunitiesGoogle Scholar
  33. OECD (2007) Offshoring and employment: trends and impact. OECD, ParisGoogle Scholar
  34. Reining A (2003) Lexikon der Außenwirtschaft. München, Wien, OldenburgGoogle Scholar
  35. Reinberg A, Hummel M (2005) Vertrauter Befund – Höhere Bildung schützt auch in der Krise vor Arbeitslosigkeit, IAB Report No. 9, Data Attachment. http://doku.iab.de/kurzber/2005/kb0905_anhang.pdf
  36. Rukwid R (2007) Arbeitslosigkeit und Lohnspreizung, Empirische Befunde zur Arbeitsmarktsituation gering Qualifizierter in Deutschland. Schriftenreihe des Promotionsschwerpunkts Globalisierung und Beschäftigung, No. 24/2007Google Scholar
  37. Samuelson PA (2004) Where Ricardo and Mill Rebut and confirm arguments of mainstream economists supporting globalization. J Econ Perspect 18(3):135–146CrossRefGoogle Scholar
  38. Schmidt H-J (2004) Tschechien ist schon lange nicht mehr verlängerte Werkbank. Die Welt, 2 April 2004Google Scholar
  39. Schöller D (2007a) Service-Offshoring: Eine Herausforderung für die Beschäftigung in Deutschland? Wirtschaftsdienst 87(4):249–257CrossRefGoogle Scholar
  40. Schöller D (2007b) Service offshoring and its impact on productivity and labor demand in Germany: evidence from revised input–output data. Paper presented at the ICEG European Center Annual Conference, Budapest, Hungary, pp 20–55Google Scholar
  41. Schöller D (2007c) Service offshoring and the demand for less-skilled labor: evidence from Germany. Hohenheim Discussion Papers, No. 287. University of Hohenheim, StuttgartGoogle Scholar
  42. Stern (2004) Made in Germany – Wir sind besser, als wir glauben. Stern, 27Google Scholar
  43. Strauss-Kahn V (2003) The role of globalization in the within-industry shift away from unskilled workers in France. NBER Working Paper, No. 9716, May 2003Google Scholar
  44. Stuttgarter Zeitung (2004) Auch Hightech-Arbeitsplätze wandern ab. Stuttgarter Zeitung, 22 April 2004Google Scholar
  45. Timmer MP, Ypma G, van Ark B (2003) IT in the European union: driving productivity convergence? Research Memorandum GD-67, October 2003. Groningen Growth and Development CentreGoogle Scholar
  46. Wessel D, Davis B (2007) Pain from free trade spurs second thoughts. Wall Street Journal, 28 March 2007Google Scholar

Copyright information

© Physica-Verlag Berlin Heidelberg 2009

Authors and Affiliations

  1. 1.Faculty of Business, Economics and Social SciencesUniversity of HohenheimStuttgartGermany

Personalised recommendations