Services Offshoring and its Impact on the Labor Market: Theoretical Insights, Empirical Evidence, and Economic Policy Recommenda,Used

Services Offshoring and its Impact on the Labor Market: Theoretical Insights, Empirical Evidence, and Economic Policy Recommenda,Used

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Services from information technology to research to finance are now as subject to international trade as goods have been for decades. What are the labor market consequences of the recent surge in services offshoring? While offshoring has traditionally been found to affect only lessskilled workers in industrialized countries, this study finds that services offshoring also has negative consequences for highskilled workers. Focusing on the case of Germany, Deborah Winkler shows how services offshoring has grown, who is most affected and what policy makers can do. Winkler measures the impact of services offshoring on German productivity, employment, and employment structure. She provides a wellbalanced synthesis of theoretical insights, detailed empirical analysis, and economic policy recommendations. Although her main focus is on the case of Germany, many insights are also applicable to other developed countries.

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