Services - from information technology to research to finance - are now
as subject to international trade as goods have been for decades. What
are the labor market consequences of the recent surge in services
offshoring? While offshoring has traditionally been found to affect only
less-skilled workers in industrialized countries, this study finds that
services offshoring also has negative consequences for high-skilled
workers. Focusing on the case of Germany, Deborah Winkler shows how
services offshoring has grown, who is most affected and what policy
makers can do. Winkler measures the impact of services offshoring on
German productivity, employment, and employment structure. She provides
a well-balanced synthesis of theoretical insights, detailed empirical
analysis, and economic policy recommendations. Although her main focus
is on the case of Germany, many insights are also applicable to other
developed countries.