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We construct a model of offshoring with externalities and firm heterogeneity. Due to the presence of externalities …, temporary shocks like the Y2K problem can have permanent effects, i.e., they can permanently raise the extent of offshoring in … an industry. Also, the initial advantage of a country as a potential host for outsourcing activities can create a lock in …
Persistent link: https://www.econbiz.de/10003596092
unemployment decreases upon offshoring in the presence of perfect intersectoral labor mobility. If, as a result, labor moves to the … intersectoral labor mobility, unemployment in the offshoring sector can rise, with an unambiguous unemployment reduction in the non-offshoring … unemployment in this sector rising. -- Trade ; offshoring ; search ; unemployment …
Persistent link: https://www.econbiz.de/10003831894
decreases. Next we allow for offshoring of unskilled jobs in our model, and we find that, as a result, it becomes more likely … that the fair-wage constraint binds. Offshoring of unskilled jobs always leads to an increase in skilled wage, a decrease … adverse impact of offshoring on unskilled unemployment. The unskilled wage can increase or decrease as a result of offshoring …
Persistent link: https://www.econbiz.de/10003831919
In this paper, in order to study the impact of offshoring on sectoral and economywide rates of unemployment, we … offshoring. This result can be understood to arise from the productivity enhancing (cost reducing) effect of offshoring. If the … search cost is identical in the two sectors, or even if the search cost is higher in the sector which experiences offshoring …
Persistent link: https://www.econbiz.de/10003596002
We present a dynamic model where the probability of outsourcing production is increasing in the firm’s expectation of … outsourcing. No prior study has been able to provide such causal evidence. Our results are robust to the inclusion of detailed … characteristics of the firms as well as firm fixed effects. -- Outsourcing ; technological change …
Persistent link: https://www.econbiz.de/10003932479
influence the demand for outsourcing. We show that outsourcing becomes more beneficial to the firm when technology is changing … expensive than outsourcing. The model therefore provides an explanation for the recent increases in outsourcing that have taken … model, namely, that all other things equal, the demand for outsourcing increases with the probability of technological …
Persistent link: https://www.econbiz.de/10003656912