CREAP2006-05: Job losses, outsourcing and relocation: Empirical evidence using Microdata

Using microdata, we analyse the determinants of firm relocation and conventional outsourcing decisions as a way to reduce employment. The results for a sample of 32 countries show the relevance of factors not considered previously in the literature. Firms that are below average in quality or innovation have a higher propensity to externalise part of their production through outsourcing, while lower relative profitability and longer time to market for new products each imply a higher probability of relocation.  

Manuel Artís (AQR-IREA); Raúl Ramos (AQR-IREA); Jordi Suriñach (AQR-IREA)