Fear of Service Outsourcing: Is It Justified?
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NBER Working Paper No. 10808
Issued in October 2004
NBER Program(s): ITI LS
The recent media and political attention on service outsourcing from developed to developing countries gives the impression that outsourcing is exploding. As a result, workers in industrial countries are anxious about job losses. This paper aims to establish what are the hypes and what are the facts. The results show that although service outsourcing has been steadily increasing it is still very low, and that in the United States and many other industrial countries "insourcing" is greater than outsourcing. Using the United Kingdom as a case study, we find that job growth at a sectoral level is not negatively related to service outsourcing.
Published: Amiti, Mary and Shang-Jin Wei. "Fear Of Service Outsourcing: Is It Justified?," Economic Policy, v20(42,Oct), 2005, 308-347.
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