The effect of outsourcing on the demand for skills in the Spanish manufacturing industry

Abstract

This study analyses the effect of outsourcing on the demand for skills in the Spanish manufacturing industries. For the first time in the literature the origin of outsourcing is taken into account, distinguishing imports coming from developing countries and imports produced in developed countries. As theoretically expected, a positive link is found between outsourcing to developing countries and a higher demand for skills in the Spanish manufacturing sectors. However, it is found that outsourcing to developed countries also has a positive effect on the demand for skills. This later result may cast some doubts on previous studies’ conclusions.