Does the Outsourcing Affect Labour Costs in Enterprises? Evidence from Firm-level Data

This empirical paper examines an impact of materials and services outsourcing on labour costs in two groups: industrial and construction enterprises, and services enterprises in Poland in the period 2005-2013. The analysis of this dependence was based on data of Central Statistical Office included in financial statement F-01/I-01. The preliminary analysis and econometric model showed that Polish industrial and construction, and service enterprises applied both types of outsourcing, but services outsourcing had more important effect on labour costs than materials outsourcing. However, the depreciation cost understood as technological progress had the biggest impact on labour costs, especially in industrial and construction firms.