Kiel Working Papers, Kiel Institute for World Economics
No 1797:
Offshoring, Wages and Job Security of Temporary Workers
Holger Görg and Dennis Görlich
Abstract: We investigate the impact of offshoring on individual
level wages and unemployment probabilities and pay particular attention to
the question of whether workers on temporary contracts are affected
differently than workers on permanent contracts. Data are taken from the
German Socio-Economic Panel (SOEP), linked with industry-level data on
offshoring of materials and services inputs calculated from the World Input
Output Database (WIOD). In manufacturing we find that temporary workers
face a significant reduction in wages as materials offshoring increases,
while permanent workers’ wages are unaffected or even tend to increase.
Offshoring of core activities generally also tends to reduce the
probability of becoming unemployed, and more so for temporary than for
permanent workers. By contrast, offshoring of services inputs does not have
any statistically significant effects on either wages or employment
probabilities in manufacturing. In the service industries, workers are
affected in terms of employment probabilities from offshoring of services
inputs only, although, in contrast to manufacturing industries, there are
no statistically significant effects on individual wages from any type of
offshoring
Keywords: Offshoring, temporary contracts, wages, job security; (follow links to similar papers)
JEL-Codes: F14,; F16,; J31; (follow links to similar papers)
35 pages, September 2012
Before downloading any of the electronic versions below
you should read our statement on
copyright.
Download GhostScript
for viewing Postscript files and the
Acrobat Reader for viewing and printing pdf files.
Downloadable files:
KWP%20Goerg%20Goerlich.pdf 
Download Statistics
Report other problems with accessing this service to Sune Karlsson ()
or Helena Lundin ().
Programing by
Design Joakim Ekebom
