causal argument paper on the effects of offshoring

This paper addressed the question of the effect of offshoring on the level of individual job loss fears in the affected industry. It was found that overall measures of offshoring were not related to job loss fears, but offshoring to low-wage countries did significantly increase them: between 1995 and 2006, according to our linear and non-linear estimates, narrow offshoring towards low and high-wage countries together can explain about 13% of the overall increase in job loss fears. Clearly, this effect is substantial, and even more so if we reflect on the fact that our approach merely measures the year-on-year effect of offshoring on job fears. Longer-run effects are absorbed by our controls for year effects, implying that our results should be seen as lower bounds.

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