Outsourcing, Occupational Restructuring, and Employee Well-being – Is There a Silver Lining?

Working Papers 277 Petri Böckerman, Mika Maliranta

Abstract

This paper explores the effects of outsourcing on employee well-being through the use of the Finnish linked employer-employee data. The direct negative effect of outsourcing is attributable to greater job destruction and worker outflow. In terms of perceived well-being, the winners in international outsourcing are those who are capable of performing interactive tasks (i.e., managers, professionals and experts), especially when offshoring involves closer connections to other developed countries.