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Offshoring and Labor Market Power: Comparing Belgian and Dutch Firms

Sabien Dobbelaere et al.

Industrial Relations: a journal of economy and society2025https://doi.org/10.1111/irel.12394article
AJG 4ABDC A*
Weight
0.37

Abstract

We study the relationship between offshoring and labor market imperfections at the firm level in Belgium and the Netherlands. In both countries, wage‐markup pricing stemming from workers' monopoly power is more prevalent than wage‐markdown pricing originating from firms' monopsony power. Offshoring is associated with a higher prevalence and intensity of wage markdowns, driven by an increase in productivity that is only imperfectly passed through into an increase in wages. The lower firm‐level productivity‐wage pass‐through in Belgium, attributed to its more centralized bargaining structure, makes wage markdowns more responsive to offshoring.

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https://doi.org/https://doi.org/10.1111/irel.12394

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@article{sabien2025,
  title        = {{Offshoring and Labor Market Power: Comparing Belgian and Dutch Firms}},
  author       = {Sabien Dobbelaere et al.},
  journal      = {Industrial Relations: a journal of economy and society},
  year         = {2025},
  doi          = {https://doi.org/https://doi.org/10.1111/irel.12394},
}

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Offshoring and Labor Market Power: Comparing Belgian and Dutch Firms

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Evidence weight

0.37

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.16 × 0.4 = 0.06
M · momentum0.53 × 0.15 = 0.08
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.