Offshoring and the Mental Health of Onshore Employees

Robin John Clerckx, Bart Leten, Christoph Grimpe, Mark Vancauteren

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Abstract

We study the impact of offshoring on the mental health of onshore employees. Using the job demands-resources framework, we argue that increased job complexity and heightened job insecurity due to offshoring has a negative effect on the mental health of onshore employees. In addition, we hypothesize that this effect is heterogeneous among firms and depends on the mode of offshoring (internal versus external ownership), offshoring destination (intra versus extra-regional), type of offshored activity (support versus primary activities), and whether jobs are lost at the onshore location. Estimating two-way fixed effect difference-in-difference models with panel data (2011-2018) for 1.1 million employees working at 2500 firms in the Netherlands, we find a negative and long-lasting effect of offshoring on the mental health of onshore employees. The effect is stronger in the case of internal ownership, extra-regional offshoring, offshoring of support (ICT) activities, and when offshoring results in layoffs.
Original languageEnglish
Title of host publicationProceedings of the Eighty-fourth Annual Meeting of the Academy of Management
EditorsSonia Taneja
Number of pages1
Place of PublicationValhalla, NY
PublisherAcademy of Management
Publication date2024
DOIs
Publication statusPublished - 2024
EventThe Academy of Management Annual Meeting 2024: Innovating for the Future: Policy, Purpose, and Organizations - Chicago, United States
Duration: 9 Aug 202413 Aug 2024
Conference number: 84
https://aom2024.eventscribe.net/

Conference

ConferenceThe Academy of Management Annual Meeting 2024
Number84
Country/TerritoryUnited States
CityChicago
Period09/08/202413/08/2024
Internet address
SeriesAcademy of Management Annual Meeting Proceedings
ISSN0065-0668

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