Service offshoring and its impacts on wages: An occupation‐oriented analysis of Germany

Abstract International trade in services has increased significantly recent decades, mainly due to innovations information and communication technology. This development also the importance of service offshoring, as companies spread their production processes across several countries. paper examines intensity offshoring specific tasks occupations, which turn leads higher imports, explores impact such substitution on wages home economy. We use micro‐level data from Occupational Information Network Socio‐Economic Panel Germany draw OECD's Input–Output Database. In total, we used about 62,000 person‐years 45 industries during 2014–2018. A particular focus our study is interaction between tradability well skill levels workers. Our main findings suggest that itself exerts downward pressure workers' wages. effect amplified by degree occupations.