This paper analyses how international outsourcing has affected the relative demand for low skilled workers in Germany … disentangle international outsourcing and trade in final goods more accurately. The main finding is that during the 1990s … international outsourcing had a significant negative impact on the relative demand for low-skilled workers, explaining between 19 …

to contracting firms. For this end we develop a new method for identifying outsourcing of food, cleaning, security and … growth of domestic outsourcing in Germany since the early 1990s. Event-study analyses show that wages in outsourced jobs fall … associated with outsourcing stem from a loss of firm-specific rents, suggesting that labor cost savings are an important reason …

estimate knowledge spillovers through outsourcing relationships between German firms, measured by the number of those firms …