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The Spillover Effect of Services Offshoring on Local Labour Markets
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Between 2000 and 2015, services offshoring has expanded across all sectors, including manufacturing. This paper examines the impact of services offshoring on local employment and wages in the UK. It employs a unique firm-level dataset that tracks offshoring flows at the postcode level, distinguishing between offshoring and non-offshoring firms. By exploiting quasi-random variation in offshoring across local labour markets, it demonstrates that services offshoring leads to increased local employment and wages. This effect arises from productivity gains within offshoring firms and positive spillovers to peers in the same local labour market due to access to cheaper inputs.
Title: The Spillover Effect of Services Offshoring on Local Labour Markets
Description:
Between 2000 and 2015, services offshoring has expanded across all sectors, including manufacturing.
This paper examines the impact of services offshoring on local employment and wages in the UK.
It employs a unique firm-level dataset that tracks offshoring flows at the postcode level, distinguishing between offshoring and non-offshoring firms.
By exploiting quasi-random variation in offshoring across local labour markets, it demonstrates that services offshoring leads to increased local employment and wages.
This effect arises from productivity gains within offshoring firms and positive spillovers to peers in the same local labour market due to access to cheaper inputs.
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