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The effects of offshoring on the elasticity of labor demand

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  • Senses, Mine Zeynep

Abstract

In this paper, I use detailed plant-level data to analyze the relationship between offshoring and labor demand elasticities in the U.S. manufacturing sector during the 1972-2001 period. The results suggest that conditional demand elasticities for production workers are positively associated with increased exposure to offshoring both in the short-run and in the long-run. This relationship holds both for the unbalanced panel of plants and, for plants which continue their operations throughout the sample period. Controlling for skill biased technical change does not alter the magnitude or the significance of the estimated positive relationship between offshoring and labor demand elasticities.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of International Economics.

Volume (Year): 81 (2010)
Issue (Month): 1 (May)
Pages: 89-98

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Handle: RePEc:eee:inecon:v:81:y:2010:i:1:p:89-98

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Web page: http://www.elsevier.com/locate/inca/505552

Related research

Keywords: Trade and labor market interactions Economic integration Labor demand Offshoring;

References

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Citations

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Cited by:
  1. Andersson, Linda & Karpaty, Patik, 2012. "Firm Level Effects of Offshoring of Goods and Services on Relative Labor Demand," Working Papers 2013:2, Örebro University, School of Business.
  2. Sato, Hitoshi & Zhu, Lianming, 2014. "Tariff reductions and labor demand elasticities : evidence from Chinese firm-level data," IDE Discussion Papers 463, Institute of Developing Economies, Japan External Trade Organization(JETRO).
  3. Hogrefe, Jan & Yao, Yao, 2012. "Offshoring and labor income risk," ZEW Discussion Papers 12-025, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  4. Christopher Kurz & Mine Z. Senses, 2013. "Importing, Exporting And Firm-Level Employment Volatility," Working Papers 13-31, Center for Economic Studies, U.S. Census Bureau.
  5. Lichter, Andreas & Peichl, Andreas & Siegloch, Sebastian, 2014. "Exporting and labor demand: Micro-level evidence from Germany," ZEW Discussion Papers 14-013, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  6. Hijzen, Alexander & Swaim, Paul, 2010. "Offshoring, labour market institutions and the elasticity of labour demand," European Economic Review, Elsevier, vol. 54(8), pages 1016-1034, November.
  7. Lichter, Andreas & Peichl, Andreas & Siegloch, Sebastian, 2014. "The Own-Wage Elasticity of Labor Demand: A Meta-Regression Analysis," IZA Discussion Papers 7958, Institute for the Study of Labor (IZA).
  8. Christopher Kurz & Mine Z. Senses, 2013. "Importing, exporting and firm-level employment volatility," Finance and Economics Discussion Series 2013-44, Board of Governors of the Federal Reserve System (U.S.).
  9. Neil Foster-McGregor & Mario Holzner & Michael Landesmann & Johannes Pöschl & Robert Stehrer & Roman Stöllinger, 2013. "A ‘Manufacturing Imperative’ in the EU – Europe's Position in Global Manufacturing and the Role of Industrial Policy," wiiw Research Reports 391, The Vienna Institute for International Economic Studies, wiiw.
  10. Silvia Rocha-Akis, 2012. "The Pain and Gain of Offshoring: The Effects of Tax Progression in a Segmented Labour Market," CESifo Working Paper Series 3739, CESifo Group Munich.
  11. Ahsan, Reshad N. & Mitra, Devashish, 2014. "Trade liberalization and labor's slice of the pie: Evidence from Indian firms," Journal of Development Economics, Elsevier, vol. 108(C), pages 1-16.
  12. Antonis Adam & Thomas Moutos, 2014. "Industry-level labour demand elasticities across the Eurozone: will there be any gain after the pain of internal devaluation?," Working Papers 185, Bank of Greece.
  13. Jan Hogrefe & Yao Yao, 2012. "Offshoring and Labor Income Risk: An Empirical Investigation," SOEPpapers on Multidisciplinary Panel Data Research 515, DIW Berlin, The German Socio-Economic Panel (SOEP).
  14. Protte, Benjamin, 2012. "Does Fleet Street shape politics? Estimating the Effect of Newspaper Coverage about Globalization on the Support for Unemployment Insurance," Working Papers 12-19, University of Mannheim, Department of Economics.

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