GEP Research Paper 07/37
Employment, Job Turnover and the Trade in Producer Services: Firm-level Evidence
Alex Hijzen, Mauro Pisu, Richard Upward and Peter Wright
Summary
The paper examines the relationship between financial structure and firm growth in China, and shows that the relative importance of the different financing sources depends on firm ownership and growth channel.
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.
Issued in November 2007
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