Martina Magli

Ludwig-Maximilian Universität München

will give a presentation on

The Direct and Indirect Effects of Services offshoring on local labour market outcomes

Abstract:

I provide new empirical evidence on the direct and indirect impact of services offshoring on local labour market outcomes.I employ a unique dataset on firms in the UK for the period 2000-2015 and exploit the variation of services offshoring across labour markets coming from the different geographical distribution of firms in the UK. Applying the new development of the literature on shift-share instruments, I show that indeed services offshoring increases overall employment and wages within local labour markets. I then decompose the results depending on firms' behaviour towards offshoring, finding that the spillover effect drives a substantial part of the positive results. Non-offshoring firms are affected by the offshoring of other firms located in the same sector and local labour market, a new finding in the offshoring literature.