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on offshoring. Furthermore, when splitting the sample according to the technological level, the effect is negative and …
Persistent link: https://www.econbiz.de/10011308488
We analyze the effect of low-skill workers offshoring on the welfare of the economy. In the context of a matching model … offshoring, namely, an increase of the unemployment benefits and the flexibilization of the labor market. Our results suggest … unemployment benefits to compensate for the negative welfare effects of offshoring, it would only take a small reduction in the …
Persistent link: https://www.econbiz.de/10010354721
The division of labor between and within countries is driven by two fundamental forces, comparative advantage and increasing returns. We set up a simple Ricardian model with a Marshallian input sharing mechanism to study their interplay. The key insight that emerges is that the interaction...
Persistent link: https://www.econbiz.de/10011543995
products and firms' use of imports in production (offshoring). We use Finnish worker-firm data merged with product-level trade … occupations. An increase in import competition has larger negative effects than an increase in offshoring. Production workers …
Persistent link: https://www.econbiz.de/10011500656
explanation is at odds with the sequence of observed facts. We propose and model an alternative scenario in which offshoring …
Persistent link: https://www.econbiz.de/10010498540
-level trade flows with firm-specific instrumental variables based on world demand and supply shocks. Both export and offshoring … shocks have a positive effect on wages. Exports increase wages for all occupational categories while offshoring has … elasticity of wages with respect to exports and offshoring is higher than in firms with no collective bargaining. Wage gains …
Persistent link: https://www.econbiz.de/10010488816
This paper investigates the dynamics of the distribution of unconditional and conditional - on technology - wages in Europe, using both industry and individual level data for the period 1995-2007. We find that the unconditional wage distribution shows scant signs of polarization in Europe. On...
Persistent link: https://www.econbiz.de/10010408903
In this paper we survey the recent empirical literature on the effects of offshoring on wage, employment and … displacement. We start with an overview of the measurement of offshoring, organizing our discussion around the three key elements … of offshoring: that it involves intermediate inputs for production (vs. final goods for consumption); that it involves …
Persistent link: https://www.econbiz.de/10011452576
We present a model of offshoring of tasks to a developing nation, which is characterized by a minimum wage formal … informal sector. An improvement in the productivity in performing offshored tasks in the developing country raises offshoring … improvements in the informal sector expand both offshoring and outsourcing, and the developed nation wage must rise. When the …
Persistent link: https://www.econbiz.de/10012242847
offshoring on the labor market can substantially deviate from standard neoclassical conclusions when search frictions hinder … exploiting offshoring. It implies that automation (offshoring) may reduce (raise) employment by lengthening (shortening …
Persistent link: https://www.econbiz.de/10012222391