Skip to main content

Table 3 The effect of outsourcing on employment change, 2002–2004, OLS estimates

From: A research note on the determinants and consequences of outsourcing using German dataEinige Bemerkungen zu den Bestimmungsgründen und Auswirkungen von Outsourcing auf Basis deutscher Daten

Variable

Specification

(1)

(2)

(3)

Expanded use of bought-in products and services, 2002–2004

0.009

  

(0.014)

  

Ratio of externally sourced inputs to value added, 2002

 

0.001

 
 

(0.0004)

 

Change in ratio of externally sourced inputs to value added, 2002–2004

  

−0.001

  

(0.001)

Sales per employee

−2.83e-06

−4.05e-06

4.48e-07

(6.03e-06)

(6.06e-06)

(5.75e-06)

Export share

−0.00005

−6.05e-06

−0.00003

(0.0002)

(0.0002)

(0.0003)

Increasing sales expected

0.058***

0.057***

0.055***

(0.010)

(0.011)

(0.011)

Investments in ICT

0.050***

0.052***

0.050***

(0.010)

(0.011)

(0.011)

Investments in production facilities

0.038***

0.040***

0.037***

(0.010)

(0.010)

(0.011)

State-of-the-art technology

0.017*

0.018*

0.013

(0.009)

(0.010)

(0.010)

Establishment size 21–100

−0.007

−0.008

−0.004

(0.012)

(0.012)

(0.012)

Establishment size 101–1,000

−0.053***

−0.063***

−0.048***

(0.016)

(0.017)

(0.017)

Establishment size 1,001 and more

−0.056**

−0.069***

−0.040

(0.022)

(0.031)

(0.033)

Wages per employee

−0.007

−0.007

−0.011

(0.006)

(0.006)

(0.006)

Share of high-skilled workers

−0.022

−0.019

−0.008

(0.019)

(0.019)

(0.020)

Separations rate

0.058

0.059

−0.023

(0.037)

(0.038)

(0.079)

Share of fixed-term workers

0.092**

0.110**

0.119**

(0.050)

(0.044)

(0.046)

Works council

−0.007

−0.001

−0.013

(0.013)

(0.013)

(0.014)

Collective agreement

−0.011

−0.012

−0.003

(0.010)

(0.010)

(0.011)

Western Germany

0.028***

0.029***

0.027**

(0.010)

(0.011)

(0.011)

Establishment founded before 1990

−0.014

−0.010

−0.012

(0.010)

(0.010)

(0.010)

Single-establishment firm (without subsidiaries)

−0.012

−0.016

−0.006

(0.011)

(0.011)

(0.012)

Legal form (omitted category: sole trader)

   

 Partnership

0.003

0.002

−0.006

(0.017)

(0.018)

(0.018)

 Limited liability corporation

0.015

0.015

0.007

(0.013)

(0.013)

(0.014)

 Company limited by shares

0.006

0.003

−0.006

(0.024)

(0.025)

(0.027)

 Public corporation

0.087

0.055

0.064

(0.068)

(0.073)

(0.083)

 Other legal form

−0.013

−0.023

0.007

(0.035)

(0.037)

(0.039)

R 2

0.05

0.06

0.07

N

4,541

4,313

3,495

  1. Notes: See Table 1. The model includes 35 industry dummies
  2. *, **, and *** denote statistical significance at the 10%, 5%, and 1% levels, respectively. Robust standard errors are in parentheses