Offshoring Tasks, yet Creating Jobs?
AbstractWe show that in a Ricardo-Viner-type trade model with unemployment due to search and matching the productivity effect of offshoring emphasized by Grossman & Rossi-Hansberg (2008) emerges as a vehicle of job creation. Improvements in the technology of offshoring causes job losses at the extensive margin where ever more tasks are performed abroad, but it also causes job creation from cost-savings associated with enhanced trade in tasks. We identify conditions under which job creation dominates job destruction. We also show that employment may follow a non-monotonic pattern of adjustment to successive improvements in the technology of offshoring.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 3019.
Date of creation: 2010
Date of revision:
offshoring; trade in tasks; unemployment; search and matching;
Find related papers by JEL classification:
- F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Christian Keuschnigg & Evelyn Ribi, 2007.
"Outsourcing, Unemployment and Welfare Policy,"
University of St. Gallen Department of Economics working paper series 2007
2007-41, Department of Economics, University of St. Gallen.
- Keuschnigg, Christian & Ribi, Evelyn, 2007. "Outsourcing, Unemployment and Welfare Policy," CEPR Discussion Papers 6605, C.E.P.R. Discussion Papers.
- Christian Keuschnigg & Evelyn Ribi, 2008. "Outsourcing, Unemployment and Welfare Policy," CESifo Working Paper Series 2452, CESifo Group Munich.
- Christian Keuschnigg & Evelyn Ribi, 2007. "Outsourcing, Unemployment and Welfare Policy," Working Papers 0720, Oxford University Centre for Business Taxation.
- Robert C. Feenstra, 2010. "Offshoring in the Global Economy: Microeconomic Structure and Macroeconomic Implications," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262013835, December.
- Gabriel J Felbermayr & Julien Prat & Hans-Jörg Schmerer, 2009.
"Trade and Unemployment: What do the data say?,"
Diskussionspapiere aus dem Institut fÃ¼r Volkswirtschaftslehre der UniversitÃ¤t Hohenheim
310/2009, Department of Economics, University of Hohenheim, Germany.
- Felbermayr, Gabriel & Prat, Julien & Schmerer, Hans-Jörg, 2011. "Trade and unemployment: What do the data say?," Munich Reprints in Economics 20381, University of Munich, Department of Economics.
- Felbermayr, Gabriel & Prat, Julien & Schmerer, Hans-Jörg, 2009. "Trade and Unemployment: What Do the Data Say?," IZA Discussion Papers 4184, Institute for the Study of Labor (IZA).
- Edward E. Leamer & Michael Storper, 2001.
"The Economic Geography of the Internet Age,"
NBER Working Papers
8450, National Bureau of Economic Research, Inc.
- Daniel Cohen, 2008. "Three Lectures on Post-Industrial Society," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262033836, December.
- Jagdish Bhagwati & Arvind Panagariya, 2004.
"The Muddles over Outsourcing,"
Journal of Economic Perspectives,
American Economic Association, vol. 18(4), pages 93-114, Fall.
- Gene M. Grossman & Esteban Rossi-Hansberg, 2006.
"Trading Tasks: A Simple Theory of Offshoring,"
NBER Working Papers
12721, National Bureau of Economic Research, Inc.
- Wilhelm Kohler, 2004. "International outsourcing and factor prices with multistage production," Economic Journal, Royal Economic Society, vol. 114(494), pages C166-C185, 03.
- Alan S. Blinder, 2005. "Fear of Offshoring," Working Papers 83, Princeton University, Department of Economics, Center for Economic Policy Studies..
- Gene M. Grossman & Esteban Rossi-Hansberg, 2006. "The rise of offshoring: it's not wine for cloth anymore," Proceedings - Economic Policy Symposium - Jackson Hole, Federal Reserve Bank of Kansas City, pages 59-102.
- Manishi Prasad & Peter Wahlqvist & Rich Shikiar & Ya-Chen Tina Shih, 2004. "A," PharmacoEconomics, Springer Healthcare | Adis, vol. 22(4), pages 225-244.
- Paul R. Krugman, 2008. "Trade and Wages, Reconsidered," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 39(1 (Spring), pages 103-154.
- Grossman, Gene M. & Rossi-Hansberg, Esteban, 2011.
"Task trade between similar countries,"
Policy Research Working Paper Series
5819, The World Bank.
- Philipp Harms & Oliver Lorz & Dieter Urban, 2012.
"Offshoring along the production chain,"
Canadian Journal of Economics,
Canadian Economics Association, vol. 45(1), pages 93-106, February.
- Philipp Harms & Oliver Lorz & Dieter Urban, 2009. "Offshoring Along the Production Chain," Working Papers 09.01, Swiss National Bank, Study Center Gerzensee.
- Philipp Harms & Oliver Lorz & Dieter M. Urban, 2009. "Offshoring along the Production Chain," CESifo Working Paper Series 2564, CESifo Group Munich.
- Baumgarten, Daniel & Geishecker, Ingo & Görg, Holger, 2010.
"Offshoring, tasks, and the skill-wage pattern,"
CEPR Discussion Papers
7756, C.E.P.R. Discussion Papers.
- Baumgarten, Daniel & Geishecker, Ingo & Görg, Holger, 2010. "Offshoring, tasks, and the skill-wage pattern," Center for European, Governance and Economic Development Research Discussion Papers 98, University of Goettingen, Department of Economics.
- Daniel Baumgarten & Ingo Geishecker & Holger Görg, 2010. "Offshoring, Tasks, and the Skill-Wage Pattern," SOEPpapers on Multidisciplinary Panel Data Research 281, DIW Berlin, The German Socio-Economic Panel (SOEP).
- Baumgarten, Daniel & Geishecker, Ingo & Görg, Holger, 2010. "Offshoring, Tasks, and the Skill-Wage Pattern," IZA Discussion Papers 4828, Institute for the Study of Labor (IZA).
- Daniel Baumgarten & Ingo Geishecker & Holger Görg, 2010. "Offshoring, tasks, and the skill-wage pattern," Kiel Working Papers 1603, Kiel Institute for the World Economy.
- Tillmann Schwörer, 2012. "Offshoring, Domestic Outsourcing, and Productivity: Evidence for a Number of European Countries," Kiel Working Papers 1786, Kiel Institute for the World Economy.
- Schmerer, Hans-Jörg, 2014. "Foreign direct investment and search unemployment: Theory and evidence," International Review of Economics & Finance, Elsevier, vol. 30(C), pages 41-56.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Julio Saavedra).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.