IT outsourcing and employment growth at the firm level


Ohnemus, Jörg


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URL: http://ub-madoc.bib.uni-mannheim.de/3111
URN: urn:nbn:de:bsz:180-madoc-31113
Document Type: Working paper
Year of publication: 2010
The title of a journal, publication series: None
Publication language: English
Institution: Sonstige Einrichtungen > ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung
MADOC publication series: Veröffentlichungen des ZEW (Leibniz-Zentrum für Europäische Wirtschaftsforschung) > ZEW Discussion Papers
Subject: 330 Economics
Classification: JEL: J21 L25 L24 L86 ,
Subject headings (SWD): Deutschland , Informationstechnische Industrie , Outsourcing , Beschäftigungsentwicklung , Wirtschaftswachstum
Keywords (English): Information and communication technology , outsourcing , employment growth
Abstract: Outsourcing is widely associated with accompanied job losses in the outsourcing firm, at least in the short run. However, the medium and long run effects of outsourcing on employment growth might still be positive. This paper particularly focuses on IT outsourcing and its medium-term effects on employment growth. Therefore, a three year time period from 2003 to 2006 is analysed using German firm-level data and instrumental variable estimation. I find evidence that IT outsourcing has a positive effect on firms’ employment growth rate. However, dividing the sample into manufacturing and service firms, a medium-term positive growth effect of IT outsourcing can only be observed for firms operating in the service sector.
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