Offshoring, labour market institutions and the elasticity of labour demand
This paper analyses the evolution of the elasticity of labour demand and the possible role of offshoring therein using industry-level data for a large number of OECD countries. The first main finding is that the wage elasticity of labour demand has increased substantially since 1980, although some o...
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| Veröffentlicht in: | European economic review 2010-11, Vol.54 (8), p.1016-1034 |
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| container_title | European economic review |
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| creator | Hijzen, Alexander Swaim, Paul |
| description | This paper analyses the evolution of the elasticity of labour demand and the possible role of offshoring therein using industry-level data for a large number of OECD countries. The first main finding is that the wage elasticity of labour demand has increased substantially since 1980, although some of this increase may reflect a trend increase in the speed of adjustment rather than an increase in the long-run wage elasticity. The evidence on the potential contribution of offshoring to raising labour demand elasticity is mixed. No association is found between increases in offshoring and demand elasticity during the second half of the 1990s, but there is a significant cross-sectional association between higher average offshoring intensity during this period and higher demand elasticity. We also find some evidence that strict employment protection legislation weakens the cross-sectional association between offshoring and higher labour demand elasticity, suggesting that the relationship between offshoring and the labour demand elasticity may depend on the national institutional environment. |
| doi_str_mv | 10.1016/j.euroecorev.2010.04.001 |
| format | Article |
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| ispartof | European economic review, 2010-11, Vol.54 (8), p.1016-1034 |
| issn | 0014-2921 1873-572X |
| language | eng |
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| source | RePEc; Elsevier ScienceDirect Journals |
| subjects | Cross-national analysis Elasticity of demand Employment protection legislation Employment protection legislation International outsourcing Labour demand Worker insecurity Industrialized nations International outsourcing Labor economics Labour demand Labour force utilization Labour law Labour market participation Labour market structure OECD countries Outsourcing Studies Subcontracting Wage rates Wages & salaries Worker insecurity |
| title | Offshoring, labour market institutions and the elasticity of labour demand |
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