Publication

This working paper investigates the impact of offshoring on individual-level wages and unemployment probabilities. It pays particular attention to the question of whether workers on temporary contracts are affected differently than workers on permanent contracts. The authors find temporary workers in manufacturing to suffer significant wage reductions as offshoring increases, while permanent workers' wages are unaffected. Offshoring of core activities generally also tends to reduce the probability of becoming unemployed, and more so for temporary than for permanent workers. By contrast, offshoring of services inputs does not have any statistically significant effects on either wages or employment probabilities in manufacturing.