Michel, Bernhard

The Effect of Offshoring on Industry-Level Employment and Productivity in Belgium - 2016.


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The reorganisation of production processes over the last couple of decades has enhanced the international division of labour and prompted offshoring of both manufacturing and business services activities. While firms are looking for efficiency gains through this reorganisation, the associated offshoring raises fears of job losses in industrialised countries like Belgium. This paper presents an analysis of offshoring and its effect for Belgium. The extent of offshoring is measured by an indicator that is based on imported intermediate inputs. This indicator allows us to determine that offshoring has raised industry-level productivity in Belgium and to show that although offshoring does not affect total industry-level employment, it does alter the composition of employment in terms of skill-levels.