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sharing, which results in aggregate unemployment. In this extended model, offshoring furthermore has non-monotonic effects on …) can offshore routine tasks to a low-wage host country. The most productive firms self-select into offshoring, and the … impact on welfare in the source country can be positive or negative, depending on the share of firms engaged in offshoring …
Persistent link: https://www.econbiz.de/10013087276
We show that in a Ricardo-Viner-type trade model with unemployment due to search and matching the productivity effect … of offshoring emphasized by Grossman & Rossi-Hansberg (2008) emerges as a vehicle of job creation. Improvements in the … technology of offshoring causes job losses at the extensive margin where ever more tasks are performed abroad, but it also causes …
Persistent link: https://www.econbiz.de/10013144365
Mexico experienced a tremendous expansion of its export-processing maquila sector during the 1990s. At the same time, a large proportion of its labor force remains employed in the informal sector. Since one of the main objectives of the maquiladora program was to increase formal employment, we...
Persistent link: https://www.econbiz.de/10013112603
labour across firms affects economy-wide unemployment. Offshoring reduces unemployment when it is confined to high …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 …
Persistent link: https://www.econbiz.de/10012978453
In this paper, we explore the role of trade in differentiated final goods as well offshoring of tasks for inequality …
Persistent link: https://www.econbiz.de/10013316113
sharing, which results in aggregate unemployment. In this extended model, offshoring furthermore has non-monotonic effects on …) can offshore routine tasks to a low-wage host country. The most productive firms self-select into offshoring, and the … impact on welfare in the source country can be positive or negative, depending on the share of firms engaged in offshoring …
Persistent link: https://www.econbiz.de/10010604634
Mexico experienced a tremendous expansion of its export-processing maquila sector during the 1990s. At the same time, a large proportion of its labor force remains employed in the informal sector. Since one of the main objectives of the maquiladora program was to increase formal employment, we...
Persistent link: https://www.econbiz.de/10009391722
In this paper, we explore the role of trade in differentiated final goods as well offshoring of tasks for inequality …
Persistent link: https://www.econbiz.de/10008833893
of jobs, and on the economy-wide unemployment rate. A reduction in the offshoring cost affects intrafirm and … cost of offshoring affects jobs and unemployment. We also show that the implications of a reduction in the cost of trading … -- with labor market frictions to study the impact of offshoring on intrafirm, intrasectoral, and intersectoral reallocation …
Persistent link: https://www.econbiz.de/10013060482
We set up a model of offshoring with heterogeneous producers that captures two empirical regularities of German … offshoring firms. There is selection of larger, more productive firms into offshoring. However, the selection is not sharp, and … offshoring and non-offshoring firms coexist over a wide range of the revenue distribution. An overlap of offshoring and non-offshoring …
Persistent link: https://www.econbiz.de/10012960120