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) 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/10013087276
We set up a general equilibrium model, in which offshoring to a low-wage country can lead to job polarisation in the … pay wages that are positively linked to their profits by a rent-sharing mechanism. Offshoring involves fixed and task … variable offshoring costs. A reduction in those variable costs increases offshoring at the intensive and at the extensive …
Persistent link: https://www.econbiz.de/10012978453
of offshoring emphasized by Grossman & Rossi-Hansberg (2008) emerges as a vehicle of job creation. Improvements in the … technology of offshoring causes job losses at the extensive margin where ever more tasks are performed abroad, but it also causes … improvements in the technology of offshoring …
Persistent link: https://www.econbiz.de/10013144365
-- with labor market frictions to study the impact of offshoring on intrafirm, intrasectoral, and intersectoral reallocation … of jobs, and on the economy-wide unemployment rate. A reduction in the offshoring cost affects intrafirm and … competition effect. The key parameters determining the impact of offshoring on reallocation of jobs at various margins as well as …
Persistent link: https://www.econbiz.de/10013060482
I study the effects of service offshoring on white-collar employment, using highly disaggregated occupational data for … service offshoring is skill-biased, because it raises employment among high-skilled occupations and lowers employment among … medium- and low-skilled ones. Within each skill group, service offshoring penalizes tradeable occupations and tends to …
Persistent link: https://www.econbiz.de/10013316986
-paying jobs are rationed due to oligopolistic market structures, insider-oriented unions and international offshoring. In this … increasing share of lower-wage workers. However, as the tax reform involves an increase in the offshoring intensity, which may …
Persistent link: https://www.econbiz.de/10013110107
Chinese firms faced an all-around trade liberalization process during the early 2000s: lower barriers from other countries on Chinese goods, and lower Chinese barriers on other countries' goods and inputs. Using novel firm-level tariff data for trading Chinese manufacturing firms, this paper...
Persistent link: https://www.econbiz.de/10012931897
This paper sets up a general oligopolistic equilibrium model with unionized labor markets. By accounting for productivity differences, the model features profit and wage differentials across industries. We use this setting to study the impact of trade liberalization on employment, welfare, and...
Persistent link: https://www.econbiz.de/10013149008
Tracking individual workers across employers and industries after Brazil's trade liberalization in the 1990s shows that foreign import penetration and tariff reductions trigger worker displacements but that neither comparative-advantage industries nor exporters absorb displaced workers for...
Persistent link: https://www.econbiz.de/10013317183
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/10013316113