Job Losses, Outsourcing and Relocation: Empirical Evidence Using Microdata
XREAP 2006-05
20 Pages Posted: 1 Jun 2011
There are 2 versions of this paper
Job Losses, Outsourcing and Relocation: Empirical Evidence Using Microdata
Date Written: October 1, 2006
Abstract
Using microdata, we analyse the determinants of firm relocation and conventional outsourcing decisions as a way to reduce employment. The results for a sample of 32 countries show the relevance of factors not considered previously in the literature. Firms that are below average in quality or innovation have a higher propensity to externalise part of their production through outsourcing, while lower relative profitability and longer time to market for new products each imply a higher probability of relocation.
Keywords: Firm relocation, outsourcing, subcontracting, logit models
JEL Classification: R30, M55, M51
Suggested Citation: Suggested Citation
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