Outsourcing, Occupational Restructuring, and Employee Well‐Being: Is There a Silver Lining?

37 Pages Posted: 10 Sep 2013

See all articles by Petri Bockerman

Petri Bockerman

Labour Institute for Economic Research; University of Turku - Turku School of Economics

Mika Maliranta

ETLA, The Research Institute of the Finnish Economy

Multiple version iconThere are 3 versions of this paper

Date Written: October 2013

Abstract

This study examines the relationship between outsourcing and various aspects of employee well‐being by devoting special attention to the role of occupational restructuring as a conveying mechanism. Using linked employer–employee data, we find that offshoring involves job destruction, especially when the destination is a low‐wage country. In such circumstances, staying employees’ job satisfaction is reduced. However, the relationship between outsourcing and employee well‐being is not entirely negative. Our evidence also shows that offshoring to high‐wage countries stimulates the vertical mobility of employees in affected firms in a manner that improves perceived well‐being, particularly in terms of better prospects for promotion.

Suggested Citation

Bockerman, Petri and Maliranta, Mika, Outsourcing, Occupational Restructuring, and Employee Well‐Being: Is There a Silver Lining? (October 2013). Industrial Relations: A Journal of Economy and Society, Vol. 52, Issue 4, pp. 878-914, 2013, Available at SSRN: https://ssrn.com/abstract=2323087 or http://dx.doi.org/10.1111/irel.12039

Petri Bockerman (Contact Author)

Labour Institute for Economic Research ( email )

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University of Turku - Turku School of Economics ( email )

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Mika Maliranta

ETLA, The Research Institute of the Finnish Economy ( email )

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Finland
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+358 9 601753 (Fax)

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