This paper reviews the empirical literature on the effects of offshoring and foreign activities of multinational enterprises on developed countries' labour markets. Results suggest that material offshoring worsens wage inequality between skilled and unskilled workers; it also seems to make employment more volatile, by raising the elasticity of labour demand and the risk of job losses. Service offshoring exerts at most small negative effects on total employment, and changes the composition of the workforce in favour of high-skilled white-collar employees. Multinationals tend to substitute domestic and foreign labour in response to changes in relative wages across countries; substitutability is weak, however, and mainly driven by horizontal, market-seeking foreign direct investments.

(2009). Offshoring, Multinationals and Labour Market: A Review of the Empirical Literature [journal article - articolo]. In JOURNAL OF ECONOMIC SURVEYS. Retrieved from http://hdl.handle.net/10446/192166

Offshoring, Multinationals and Labour Market: A Review of the Empirical Literature

Crino', Rosario
2009-01-01

Abstract

This paper reviews the empirical literature on the effects of offshoring and foreign activities of multinational enterprises on developed countries' labour markets. Results suggest that material offshoring worsens wage inequality between skilled and unskilled workers; it also seems to make employment more volatile, by raising the elasticity of labour demand and the risk of job losses. Service offshoring exerts at most small negative effects on total employment, and changes the composition of the workforce in favour of high-skilled white-collar employees. Multinationals tend to substitute domestic and foreign labour in response to changes in relative wages across countries; substitutability is weak, however, and mainly driven by horizontal, market-seeking foreign direct investments.
articolo
2009
Crino', Rosario
(2009). Offshoring, Multinationals and Labour Market: A Review of the Empirical Literature [journal article - articolo]. In JOURNAL OF ECONOMIC SURVEYS. Retrieved from http://hdl.handle.net/10446/192166
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/10446/192166
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