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(products) of the economy and thus also includes employment effects of service offshoring. Third, we also calculate the …
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The impact of offshoring on domestic jobs is more complicated than it first appears. In the standard narrative …, offshoring production is thought to harm domestic workers by providing cheap alternative sources of labor. However, while … offshoring may directly displace domestic workers, the resulting foreign market access and lower production costs allow domestic …
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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 …
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This paper provides new evidence on how offshoring shifts relative labor demand for tasks at the industry level. A … novel theoretical mechanism, based on sorting of heterogeneous workers into occupations with task dependent offshoring cost …, guides estimation. Cost shares of tasks are linked to offshoring in a panel estimation using German data for 1998-2007. It is …
Persistent link: https://www.econbiz.de/10009792970
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/10011551032
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