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date: 20 October 2021

Abstract and Keywords

This chapter provides an overview of the sector bias of offshoring, focusing on the empirical importance for labor-market effects. Section 2 starts by summarizing the main theoretical findings of the sector bias of offshoring and provides empirically testable hypotheses concerning labor-market implications. Section 3 addresses measurement problems. It discusses the problems arising when offshoring needs to be proxied at the industry level. Different indices that are used to measure offshoring activities are presented and examined with respect to their quality. Section 4 presents empirical results for Germany that illuminate the existence of the sector bias of offshoring. Section 5 discusses the empirical results from an exhaustive perspective, also taking different labor-market institutions into account. Section 6 concludes by summarizing the main results and addressing possible lines for further research. Relevant issues for policy makers are extracted as well.

Keywords: offshoring, labor market, sector bias, Germany, outsourcing

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