Offshoring in Europe-Evidence of a Two-Way Street from Denmark

Working Paper
June 2006

Jacob Funk KirkegaardNew data from Denmark reveal that more jobs were created in 2002-05 due to inshoring of jobs to eastern Denmark than were lost by offshoring of jobs by companies in that region. Both offshoring and inshoring took place in essentially all relevant sectors of the eastern Danish economy, particularly in manufacturing and information technology. The employment trends pose challenges for low-skilled workers, who are most likely to lose their jobs due to offshoring, and for highly skilled specialists, who face pressure to constantly upgrade their skills.