Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/293971 
Year of Publication: 
2023
Citation: 
[Journal:] The World Economy [ISSN:] 1467-9701 [Volume:] 47 [Issue:] 4 [Publisher:] Wiley [Place:] Hoboken, NJ [Year:] 2023 [Pages:] 1615-1641
Publisher: 
Wiley, Hoboken, NJ
Abstract: 
International trade in services has increased significantly in recent decades, mainly due to innovations in information and communication technology. This development has also increased the importance of service offshoring, as companies spread their production processes across several countries. This paper examines the intensity of offshoring of specific tasks of occupations, which in turn leads to higher imports, and explores the impact of such substitution on wages in the home economy. We use micro-level data from the Occupational Information Network and the Socio-Economic Panel in Germany and draw on the OECD's Input–Output Database. In total, we used data from about 62,000 person-years in 45 industries in Germany during 2014–2018. A particular focus of our study is on the interaction between service offshoring and the tradability as well as skill levels of workers. Our main findings suggest that service offshoring itself exerts downward pressure on workers' wages. This effect is amplified by the degree of tradability of the occupations.
Subjects: 
international trade in services
microeconomic impacts
service offshoring
trade and labor market interactions
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Article
Document Version: 
Published Version

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