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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
The paper investigates the relationship between offshoring, wages, and the ease with which individuals' tasks can be … suitability of a task for offshoring and the associated skill level. Accordingly, wage effects of offshoring can be very … on offshoring. Our main results suggest that in partial equilibrium, wage effects of offshoring are fairly modest but far …
Persistent link: https://www.econbiz.de/10010283029
The paper investigates the relationship between offshoring, wages, and the ease with which individuals' tasks can be … suitability of a task for offshoring and the associated skill level. Accordingly, wage effects of offshoring can be very … on offshoring. Our main results suggest that in partial equilibrium, wage effects of offshoring are fairly modest but far …
Persistent link: https://www.econbiz.de/10008825071
Outsourcing is an efficient way to reduce a company’s costs and is often necessary to remain competitive. However, the practice has had its critics. This article summarizes the outsourcing debate that has been going on in the United States and offers some insights about the practice. Also...
Persistent link: https://www.econbiz.de/10014034714
This chapter reviews the state of the international trade literature on multinational firms. This literature addresses three main questions. First, why do some firms operate in more than one country while others do not? Second, what determines in which countries production facilities are...
Persistent link: https://www.econbiz.de/10014025384
This paper studies the effects of service offshoring on the level and skill composition of domestic employment, using a … rich data set of Italian firms and propensity score matching techniques. The results show that service offshoring has no …
Persistent link: https://www.econbiz.de/10013142657
The paper investigates the relationship between offshoring, wages, and the ease with which individuals' tasks can be … suitability of a task for offshoring and the associated skill level. Accordingly, wage effects of offshoring can be very … on offshoring. Our main results suggest that in partial equilibrium, wage effects of offshoring are fairly modest but far …
Persistent link: https://www.econbiz.de/10008519443
Existing models of offshoring are not equipped to explain how global production sharing affects the volatility of … economic activity. This paper develops a trade model that can account for why offshoring industries in low wage countries such … States. We argue that a key to explaining this outcome is that the extensive margin of offshoring responds endogenously to …
Persistent link: https://www.econbiz.de/10010574406
The paper investigates the relationship between offshoring, wages, and the occupational task profile using rich … individual-level panel data. Our main results suggest that, when only considering within-industry changes in offshoring, we … identify a moderate wage reduction due to offshoring for low-skilled workers, though wage effects in relation to the task …
Persistent link: https://www.econbiz.de/10011048638
This paper empirically assesses the responsiveness of US offshoring to intellectual property rights (IPR) reforms in 16 … countries. We construct a measure of US offshoring at the industry level based on trade in intermediate goods, covering 23 … industries for the period 1973–2006. For each industry, we differentiate between broad offshoring and intra-industry offshoring …
Persistent link: https://www.econbiz.de/10011065948