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Service Offshoring and White-Collar Employment

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  • Rosario Crin�
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    Abstract

    This paper empirically studies the effects of service offshoring on white-collar employment, using data for more than 100 US occupations over the period 1997--2006. A model of firm behaviour based on separability allows derivation of the labour demand elasticity with respect to service offshoring for each occupation. Estimation is performed with quasi-maximum likelihood, to account for high degrees of censoring in the employment variable. The estimated elasticities are then related to proxies for the skill level and the degree of tradability of the occupations. Results suggest that service offshoring is skill-biased, because it increases employment in more skilled occupations relative to less skilled occupations. At a given skill level, however, service offshoring penalizes tradable occupations relative to non-tradable occupations. Copyright , Wiley-Blackwell.

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    File URL: http://hdl.handle.net/10.1111/j.1467-937X.2009.00586.x
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    Bibliographic Info

    Article provided by Oxford University Press in its journal The Review of Economic Studies.

    Volume (Year): 77 (2010)
    Issue (Month): 2 ()
    Pages: 595-632

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    Handle: RePEc:oup:restud:v:77:y:2010:i:2:p:595-632

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    Cited by:
    1. Daniel Baumgarten & Ingo Geishecker & Holger Görg, 2010. "Offshoring, Tasks, and the Skill-Wage Pattern," SOEPpapers on Multidisciplinary Panel Data Research, DIW Berlin, The German Socio-Economic Panel (SOEP) 281, DIW Berlin, The German Socio-Economic Panel (SOEP).
    2. Sascha O. Becker & Karolina Ekholm & Marc-Andreas Muendler, 2009. "Offshoring and the Onshore Composition of Tasks and Skills," IAW Discussion Papers, Institut für Angewandte Wirtschaftsforschung (IAW) 55, Institut für Angewandte Wirtschaftsforschung (IAW).
    3. Baldauf, Markus & Santos Silva, J.M.C., 2012. "On the use of robust regression in econometrics," Economics Letters, Elsevier, Elsevier, vol. 114(1), pages 124-127.
    4. Rosario Crinò, 2011. "Imported Inputs and Skill Upgrading," Development Working Papers, Centro Studi Luca d\'Agliano, University of Milano 323, Centro Studi Luca d\'Agliano, University of Milano, revised 27 Dec 2011.
    5. Basco, Sergi & Mestieri, Martí, 2013. "Heterogeneous trade costs and wage inequality: A model of two globalizations," Journal of International Economics, Elsevier, Elsevier, vol. 89(2), pages 393-406.
    6. Elisa Borghi & Rosario Crinò, 2013. "Service offshoring and wages: worker-level evidence from Italy," LIUC Papers in Economics, Cattaneo University (LIUC) 264, Cattaneo University (LIUC).
    7. repec:cml:docinv:11 is not listed on IDEAS
    8. Semih Akcomak & Henri de Groot & Stefan Groot, 2013. "The impact of trade, offshoring and multinationals on job loss and job finding," CPB Discussion Paper, CPB Netherlands Bureau for Economic Policy Analysis 252, CPB Netherlands Bureau for Economic Policy Analysis.

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