Using comparable industry-level data for nine Western European countries, this paper finds that the international relocation of service activities (service offshoring) exerts positive and economically large effects on domestic productivity. A one percentage point increase in the proxy for...

This paper studies the e¤ects of service offshoring on the skill composition of labor demand in Western Europe, using comparable data for nine economies during the 1990s. A short-run translog cost function allows derivation of demand elasticities for three labor inputs. Potential endogeneity...

This paper deals with recent concerns about potentially negative effects of service offshoring on U.S. white-collar workers. At this purpose, the paper uses highly disaggregated occupational data and develops a Flexible and Separable Translog model in which service offshoring is allowed to...