Beyond job losses: The net effects of offshoring and inshoring on employment in the Danish economy

Abstract

Purpose

The purpose of this paper is to assess the impact of offshoring and inshoring on the demand for different types of labor.

Design/methodology/approach

The paper uses a survey with 1,500 firms located in the Eastern part of Denmark to identify overall offshoring and inshoring trends. Estimates of the employment impact are founded on data from a sub‐sample of firms with offshoring and/or inshoring.

Findings

The paper shows that in the period 2002‐2005 more jobs were created as a result of inshoring of activities into Eastern Denmark from firms outside Denmark than were eliminated due to offshoring from firms in the Danish region. Overall, highly skilled workers reap the benefits of offshoring and inshoring, whereas the positions of low‐skilled workers are challenged.

Originality/value

In contrast to most academic research on offshoring, which predominantly focus on outward offshoring flows, the study analyzes both outward and inward offshoring (inshoring) and gives a more holistic and balanced view on the magnitude and employment impact.

Citation

Ørberg Jensen, P.D., Funk Kirkegaard, J. and Søndergaard Laugesen, N. (2009), "Beyond job losses: The net effects of offshoring and inshoring on employment in the Danish economy", Strategic Outsourcing: An International Journal, Vol. 2 No. 2, pp. 123-144. https://doi.org/10.1108/17538290910973358