At Vox, Sascha Becker, Karolina Ekholm, and Marc Muendler use firm-level data from Germany to assess how the job composition at home changes when firms offshore abroad:
How do offshoring firms reshape their domestic workforce? This column, using evidence from German multinationals, shows a positive correlation between offshoring and the firm’s proportion of highly educated workers. Offshoring firms have relatively more domestic jobs involving non-routine and interactive tasks. But offshoring is far from the only explanation for the shift towards more educated employees carrying out more advanced tasks.