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Services – from information technology to research to finance – are now as subject to international trade as goods have been for decades. What are the labor market consequences of the recent surge in services offshoring? While offshoring has traditionally been found to affect only less-skilled...
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We analyze the effects of neutral and investment-specific technology shocks on hours worked and unemployment. We …. Neutral shocks increase unemployment and explain a substantial portion of unemployment and output volatility; investment … consistent with the view that neutral technological progress prompts Schumpeterian creative destruction, while investment …
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