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depends on the productivity and thus the economic success of the firm they are working in, we can study the determinants of …
Persistent link: https://www.econbiz.de/10013317452
labor market effects of offshoring. While theory focuses on one-sector or two-sector models, empirical studies exploit … variation in offshoring across a large number of industries, typically including a linear offshoring term in the analysis …. Thereby, these studies implicitly assume a monotonic relationship between offshoring and labor market outcomes and ignore …
Persistent link: https://www.econbiz.de/10013315206
We show that, even with flexible domestic wages, international outsourcing may worsen the welfare of the home country and reduce the profits of all firms. If wages are rigid, outsourcing is welfare-improving if and only if the sum of the "trade creation" effect and the "exploitation effect"...
Persistent link: https://www.econbiz.de/10010276977
) can offshore routine tasks to a low-wage host country. The most productive firms self-select into offshoring, and the … impact on welfare in the source country can be positive or negative, depending on the share of firms engaged in offshoring … among entrepreneurs is higher with offshoring than in autarky. All results hold in a model extension with firm-level rent …
Persistent link: https://www.econbiz.de/10010291498
Mexico experienced a tremendous expansion of its export-processing maquila sector during the 1990s. At the same time, a large proportion of its labor force remains employed in the informal sector. Since one of the main objectives of the maquiladora program was to increase formal employment, we...
Persistent link: https://www.econbiz.de/10010280836
markets through exporting and through offshoring, and we show that due to monopsonistic competition our model makes sharply … and the offshoring of tasks. At the firm-level, exporting leads to higher wages and employment, while offshoring of … productivity, and firms with low productivities exit the market. This reduces the monopsony distortion present in autarky, where …
Persistent link: https://www.econbiz.de/10012865164
In this paper, we explore the role of trade in differentiated final goods as well offshoring of tasks for inequality …
Persistent link: https://www.econbiz.de/10010275053
depends on the productivity and thus the economic success of the firm they are working in, we can study the determinants of …
Persistent link: https://www.econbiz.de/10010264131
The study proves evidence of five new empirical facts on the impact of services offshoring on local labour markets …. First, services offshoring increases average employment and wages within local labour markets, much more so in the … manufacturing industry than in the services one. Second, positive effects are both on firms directly offshoring services and on non-offshoring …
Persistent link: https://www.econbiz.de/10012828788
This paper quantifies the origins of firm size heterogeneity when firms are interconnected in a production network. Using the universe of buyer-supplier relationships in Belgium, the paper develops a set of stylized facts that motivate a model in which firms buy inputs from upstream suppliers...
Persistent link: https://www.econbiz.de/10012892141