Unless otherwise defined, the relocation of operational tasks abroad (movement to a location in another country of some part of a firm’s activity, usually a part of its production process or, frequently, various back office functions), which is also common among banks for tax purposes. In the euro area, this relocation is accompanied by a shift in demand away from the low-skilled (skill bias in labor demand). Because this development also affects monetary policy via the balance of payments and via necessary government transfers to the unemployed, it is monitored by the ECB. – See compensation per capita, labor costs, labor demand, Phillips theorem, growth-employment relationship, two-pillar principle. – Cf. ECB Monthly Bulletin, January 2008, pp. 88 ff. (thorough presentation; overviews; references).
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