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The Impacts of Technology, Trade and Outsourcing on Employment and Labor Composition

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Author Info
Paul, Catherine J Morrison
Siegel, Donald S

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Abstract

Empirical studies of skill-biased technological change are typically based on a simple production or cost function framework and limited information on technology and labor composition. In contrast, we simultaneously assess the impacts of trade, technology, and outsourcing on shifts in labor demand using a dynamic cost function framework and comprehensive measures of workforce composition and investment in technology. Our findings indicate that technological change has had the largest impact on changes in labor composition. However, the indirect impact of trade on shifts in employment augments its direct impact because trade stimulates computerization, which further exacerbates skill-biased technological change. Copyright 2001 by The editors of the Scandinavian Journal of Economics.

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Article provided by Blackwell Publishing in its journal Scandinavian Journal of Economics.

Volume (Year): 103 (2001)
Issue (Month): 2 (June)
Pages: 241-64
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Handle: RePEc:bla:scandj:v:103:y:2001:i:2:p:241-64

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  1. Eiichi Tomiura, 2004. "Foreign outsourcing and firm-level characteristics: evidence from Japanese manufacturers," Hi-Stat Discussion Paper Series d04-64, Institute of Economic Research, Hitotsubashi University. [Downloadable!]
  2. Claudio Piga & Donald S. Siegel, 2003. "New Evidence on the Link between Technological Change and Employment: Extending the Neo-Classical Paradigm," Rensselaer Working Papers in Economics 0303, Rensselaer Polytechnic Institute, Department of Economics. [Downloadable!]
  3. Ludo Cuyvers & Michel Dumont & Glenn Rayp & Katrien Stevens, 2005. "Home Employment Effects of EU Firms’ Activities in Central and Eastern European Countries," Open Economies Review, Springer, vol. 16(2), pages 153-174, April. [Downloadable!] (restricted)
  4. Erik Mellander, 2000. "The Multi-Dimensional Nature of Labor Demand and Skill-Biased Technical Change," Econometric Society World Congress 2000 Contributed Papers 0671, Econometric Society. [Downloadable!]
  5. Hoekman & Bernard & Winters, L. Alan, 2005. "Trade and employment : stylized facts and research findings," Policy Research Working Paper Series 3676, The World Bank. [Downloadable!]
    Other versions:
  6. Rosario Crinò, 2009. "Service Offshoring and White-Collar Employment," UFAE and IAE Working Papers 775.09, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC). [Downloadable!]
    Other versions:
  7. Falk, Martin & Koebel, Bertrand M., 2000. "Outsourcing of services, imported materials and the demand for heterogeneous labour : an application of a generalised box-cox function," ZEW Discussion Papers 00-51, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
  8. Mercedes Teruel-Carrizosa & Agustí Segarra-Blasco, 2008. "Immigration and Firm Growth: Evidence from Spanish cities," Working Papers XREAP2008-11, Xarxa de Referència en Economia Aplicada (XREAP), revised Nov 2008. [Downloadable!]
  9. Michael Landesmann & Robert Stehrer, 2009. "South-North Integration, Outsourcing and Skills," Research Reports 353, The Vienna Institute for International Economic Studies, wiiw. [Downloadable!]
  10. Baltagi, Badi H. & Rich, Daniel P., 2003. "Skill-Biased Technical Change in U.S. Manufacturing: A General Index Approach," IZA Discussion Papers 841, Institute for the Study of Labor (IZA). [Downloadable!]
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  11. L. Cuyvers & M. Dumont & G. Rayp & K. Stevens, 2002. "Home Employment Effects of EU Firms' Activities in Central and Eastern European Countries," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 02/158, Ghent University, Faculty of Economics and Business Administration. [Downloadable!]
  12. Mellander, Erik, 1999. "The multi-dimensional nature of labor demand and skill-biased technical change," Working Paper Series 1999:9, IFAU - Institute for Labour Market Policy Evaluation. [Downloadable!]
  13. Rouben Indjikain & Donald S. Siegel, 2004. "The Impact of Investment in IT on Economic Performance: Implications for Developing Countries," Rensselaer Working Papers in Economics 0414, Rensselaer Polytechnic Institute, Department of Economics. [Downloadable!]
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  14. Catherine J. MORRISON & Donald SIEGEL, 1997. "Automation Or Openness?: Technology And Trade Impacts On Costs And Labor Composition In The Food System," Department of Resource Economics Regional Research Project 965, University of Massachusetts. [Downloadable!]
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  15. Carsten Ochsen, 2004. "Zukunft der Arbeit und Arbeit der Zukunft in Deutschland," Thuenen-Series of Applied Economic Theory 45, University of Rostock, Institute of Economics, Germany. [Downloadable!]
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  16. R. Antonietti & D. Antonioli, 2007. "Production offshoring and the skill composition of Italian manufacturing firms A quasi-experimental analysis," Working Papers 594, Dipartimento Scienze Economiche, Universita' di Bologna. [Downloadable!]
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  17. Mariacristina Piva & Marco Vivarelli, 2004. "The determinants of the skill bias in Italy: R&D, organisation or globalisation?," Economics of Innovation and New Technology, Taylor and Francis Journals, vol. 13(4), pages 329-347, June. [Downloadable!] (restricted)
  18. Geishecker, Ingo & Görg, Holger, 2004. "Winners and Losers: Fragmentation, Trade and Wages Revisited," IZA Discussion Papers 982, Institute for the Study of Labor (IZA). [Downloadable!]
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  19. Lihong Yun, 2008. "Technical Progress and Labour Demand in Swedish Manufacturing Firms," Journal of Industry, Competition and Trade, Springer, vol. 8(2), pages 147-167, June. [Downloadable!] (restricted)
  20. Rosario Crino, 2006. "Are U.S. White-Collar Really at Risk of Service Offshoring?," CESPRI Working Papers 183, CESPRI, Centre for Research on Innovation and Internationalisation, Universita' Bocconi, Milano, Italy, revised Oct 2006. [Downloadable!]
  21. Giuseppe Medda & Claudio Piga & Donald S. Siegel, 2004. "Assessing the Returns to Collaborative Research: Firm-Level Evidence from Italy," Rensselaer Working Papers in Economics 0416, Rensselaer Polytechnic Institute, Department of Economics. [Downloadable!]
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  22. Giuseppe Medda & Claudio Piga & Donald S. Siegel, 2003. "On the Relationship between R&D and Productivity: a Treatment Effect Analysis," Rensselaer Working Papers in Economics 0307, Rensselaer Polytechnic Institute, Department of Economics. [Downloadable!]
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