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AuthorEl-Sahli, Zouheir
AuthorGullstrand, Joakim
AuthorOlofsdotter, Karin
Available date2023-02-19T07:38:23Z
Publication Date2022-01-07
Publication NameSmall Business Economics
Identifierhttp://dx.doi.org/10.1007/s11187-021-00578-2
CitationEl-Sahli, Z., Gullstrand, J., & Olofsdotter, K. (2022). The external effects of offshoring on job security in SMEs. Small Business Economics, 1-28.
ISSN0921-898X
URIhttps://www.scopus.com/inward/record.uri?partnerID=HzOxMe3b&scp=85122486959&origin=inward
URIhttp://hdl.handle.net/10576/40127
AbstractWe investigate the effects of offshoring on job security using matched employer-employee data from Sweden. Between 1997 and 2011, the share of offshoring firms fell from around 25 to 22% while offshoring per worker within offshoring firms almost doubled. We use this variation to contribute to the literature by examining the effects of the neighboring firms’ offshoring (external offshoring) on job separation in small and medium-sized enterprises (SMEs). Our results suggest that external offshoring has a significant impact on job security in SMEs that do not offshore themselves. In addition, having a university degree, being young, and being new to the job reduce the risk of a job exit due to increased external offshoring. This result is indicative of a Schumpeterian job-restructuring effect where old jobs are replaced by newer ones. Finally, the increased risk of a job exit in SMEs suggests a higher vulnerability of these firms to local shocks due to offshoring activities in larger neighboring firms.
SponsorFinancial support from the Torsten Söderberg’s Foundation and the Jan Wallander and Tom Hedelius Foundation is gratefully acknowledged.
Languageen
PublisherSpringer
SubjectGlobalization
Heterogeneous firms
Job security
Offshoring
Small and medium-sized enterprises
Swedish manufacturing
TitleThe external effects of offshoring on job security in SMEs
TypeArticle
Pagination1-28
Issue Number4
Volume Number59
ESSN1573-0913
dc.accessType Open Access


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