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Service Offshoring and White-Collar Employment

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  • Rosario Crinò

Abstract

I study the effects of service offshoring on white-collar employment, using highly disaggregated occupational data for the U.S.. I present a structural model of the firm’s behavior that allows tractable derivation of labor demand elasticities for highly detailed occupations. I estimate the model using Quasi-Maximum Likelihood, to simultaneously account for the high degree of censoring of the employment variable and the small cross-sectional dimension of the panel. I find that service offshoring is skill-biased, because it raises employment among high-skilled occupations and lowers employment among medium- and low-skilled ones. Within each skill group, service offshoring penalizes tradeable occupations and tends to benefit complex non tradeable jobs.

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Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 2040.

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Date of creation: 2007
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Handle: RePEc:ces:ceswps:_2040

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Keywords: service offshoring; white-collar occupations; labor demand elasticities; homothetic weak separability; censored demand system estimation;

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Cited by:
  1. Rosario Crinò, 2009. "Service Offshoring and White-Collar Employment," Working Papers 391, Barcelona Graduate School of Economics.
  2. Daniel Horgos, 2010. "A Ricardo-Viner Approach to Service Offshoring," Development Working Papers 290, Centro Studi Luca d\'Agliano, University of Milano, revised 30 Apr 2010.
  3. Runjuan Liu & Daniel Trefler, 2011. "A Sorted Tale of Globalization: White Collar Jobs and the Rise of Service Offshoring," NBER Working Papers 17559, National Bureau of Economic Research, Inc.
  4. Crinò, Rosario, 2010. "Employment effects of service offshoring: Evidence from matched firms," Economics Letters, Elsevier, vol. 107(2), pages 253-256, May.
  5. Andrei Zlate & Federico Mandelman, 2013. "Offshoring, Low-skilled Immigration and Labor Market Polarization," 2013 Meeting Papers 1073, Society for Economic Dynamics.
  6. Bas ter Weel & Semih Akcomak & Lex Borghans, 2010. "Measuring and interpreting trends in the division of labour in the Netherlands," CPB Discussion Paper 161, CPB Netherlands Bureau for Economic Policy Analysis.
  7. Rosario Crinò, 2012. "Service Offshoring and the Skill Composition of Labour Demand," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 74(1), pages 20-57, 02.

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