Working Paper No. 654

The Effect of Offshoring on Labor Demand: Evidence from Sweden

Published: December 8, 2005, revised May 8, 2006Pages: 40Keywords: Offshoring; Labor Demand; Translog Cost Function; Factor-Biased Technological ChangeJEL-codes: F16

The Effect of Offshoring on Labor Demand: Evidence from Sweden Karolina Ekholm and Katariina Hakkala

We analyze the effects of offshoring of intermediate input production on labor demand in Sweden, distinguishing between workers with different educational attainments. The econometric results using data for the 1995-2000 period indicate that offshoring – in particular to low-income countries – tends to shift labor demand away from workers with an intermediate level of education. Offshoring to high-income countries, which is the largest component of overall offshoring, does not have any statistically significant effect on the composition of labor demand.

Interdisciplinary European Studies

The European Union in a Changing World Order

This book explores how the European Union responds to the ongoing challenges to the liberal international order. These challenges arise both within the EU itself and beyond its borders, and put into question the values of free trade and liberal democracy.

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