Employment, Job Turnover and the Trade in Producer Services: Firm-level Evidence

Abstract

We provide the first firm-level evidence of the impact of the trade in producer services (“offshoring”) on the labour market. Using a new dataset which measures trade in services at the firm-level, we find no evidence that importing intermediate services is associated with job losses or greater worker turnover. Using regression and propensity score matching techniques, we show that firms which start importing intermediate services experience faster employment growth than equivalent firms which do not.Offshoring, exporting, services, employment, job turnover