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Offshoring: Why Do Stories Differ?

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  • Wilhelm Kohler

Abstract

This paper identifies critical modeling choices, as well as differences in the driving forces behind offshoring, that may explain differences in results. Offshoring of industry-specific tasks has wage and employment effects that are vastly different from those identified in Grossman & Rossi-Hansberg (2006), depending on how the industries differ in their average and marginal skill-intensities, respectively. Structural adjustment may occur at the intensive margin and the extensive margin (offshoring), and it may occur in opposite directions or the same direction at both margins, again depending on how industries differ in terms of their average and marginal skill-intensity.

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  • Wilhelm Kohler, 2008. "Offshoring: Why Do Stories Differ?," CESifo Working Paper Series 2232, CESifo.
    • Handle: RePEc:ces:ceswps:_2232
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    References listed on IDEAS

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    Cited by:

    1. Philipp Harms & Oliver Lorz & Dieter Urban, 2012. "Offshoring along the production chain," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 45(1), pages 93-106, February.
    2. Horgos Daniel, 2012. "International Outsourcing and Wage Rigidity," Global Economy Journal, De Gruyter, vol. 12(2), pages 1-28, June.
    3. Alessia Lo Turco & Aleksandra Parteka, 2009. "The EU enlargement and domestic employment," Economics Bulletin, AccessEcon, vol. 29(3), pages 2202-2217.
    4. Alessia Lo Turco & Aleksandra Parteka, 2011. "The demand for skills and labour costs in partner countries," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 19(3), pages 611-637, July.
    5. Anna M. Falzoni & Lucia Tajoli, 2011. "Offshoring and the Skill Composition of Employment in the Italian Manufacturing Industries," Rivista di Politica Economica, SIPI Spa, issue 1, pages 121-153, January-M.
    6. Thomas Kemeny & David Rigby, 2012. "Trading away what kind of jobs? Globalization, trade and tasks in the US economy," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 148(1), pages 1-16, April.

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