Advanced Search
MyIDEAS: Login to save this paper or follow this series

Tradable Services: Understanding the Scope and Impact of Services Outsourcing

Contents:

Author Info

  • J. Bradford Jensen

    ()
    (Institute for International Economics)

  • Lori G. Kletzer

    ()
    (University of California, Santa Cruz)

Abstract

We develop a new empirical approach to identify tradable service activities. Contrary to conventional views of service activities as nontradable, we find a significant number of service industries and occupations that appear tradable and substantial employment in these tradable activities. Workers employed in tradable service activities differ from those employed in tradable manufacturing and nontradable services. Workers in tradable service activities have higher skill levels and are paid higher wages than manufacturing workers or workers in nontradable service activities. In general, we find little evidence that tradable service activities have lower employment growth than other service activities. However, evidence suggests lower employment growth at the lowest end of the skill distribution. There is also evidence of higher worker displacement rates in tradable services. Workers displaced from tradable service activities are different from displaced manufacturing workers: Displaced tradable service workers have higher skills and higher predisplacement earnings than displaced manufacturing workers.

Download Info

If 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.
File URL: http://www.petersoninstitute.org/publications/wp/wp05-9.pdf
Download Restriction: no

Bibliographic Info

Paper provided by Peterson Institute for International Economics in its series Working Paper Series with number WP05-9.

as in new window
Length:
Date of creation: Sep 2005
Date of revision:
Handle: RePEc:iie:wpaper:wp05-9

Contact details of provider:
Postal: 1750 Massachusetts Avenue, NW, Washington, DC 20036-1903
Phone: 202-328-9000
Fax: 202-659-3225
Email:
Web page: http://www.piie.com
More information through EDIRC

Related research

Keywords: services; offshoring; trade; labor; information technology; jobs;

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
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.:
as in new window
  1. Glenn Ellison & Edward L. Glaeser, 1999. "The Geographic Concentration of Industry: Does Natural Advantage Explain Agglomeration?," Harvard Institute of Economic Research Working Papers 1862, Harvard - Institute of Economic Research.
  2. Glenn Ellison & Edward L. Glaeser, 1994. "Geographic Concentration in U.S. Manufacturing Industries: A Dartboard Approach," NBER Working Papers 4840, National Bureau of Economic Research, Inc.
  3. Asish Arora & Alfonso Gambardella, 2004. "The Globalization of the Software Industry: Perspectives and Opportunities for Developed and Developing Countries," NBER Working Papers 10538, National Bureau of Economic Research, Inc.
  4. Jagdish Bhagwati & Arvind Panagariya & T. N. Srinivasan, 2004. "The Muddles over Outsourcing," International Trade 0408004, EconWPA.
  5. Catherine L. Mann, 2003. "Globalization of IT Services and White Collar Jobs: The Next Wave of Productivity Growth," Policy Briefs PB03-11, Peterson Institute for International Economics.
  6. Bardhan, Ashok Deo & Kroll, Cynthia, 2003. "The New Wave of Outsourcing," Fisher Center for Real Estate & Urban Economics, Research Reports qt02f8z392, Fisher Center for Real Estate & Urban Economics, UC Berkeley.
  7. Gilles Duranton & Henry G. Overman, 2005. "Testing for localization using micro-geographic data," LSE Research Online Documents on Economics 581, London School of Economics and Political Science, LSE Library.
  8. Lori G. Kletzer & Robert E. Litan, 2001. "A Prescription to Relieve Worker Anxiety," Policy Briefs PB01-02, Peterson Institute for International Economics.
  9. Lori G. Kletzer, 2001. "Job Loss from Imports: Measuring the Costs," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 110, July.
  10. Andrew B. Bernard & J. Bradford Jensen & Peter K. Schott, 2002. "Survival of the Best Fit: Competition from Low Wage Countries and the (Uneven) Growth of US Manufacturing Plants," Yale School of Management Working Papers ysm299, Yale School of Management.
  11. Lori G. Kletzer, 1998. "Job Displacement," Journal of Economic Perspectives, American Economic Association, vol. 12(1), pages 115-136, Winter.
  12. Amiti, Mary & Wei, Shang-Jin, 2004. "Fear of Outsourcing: Is It Justified?," CEPR Discussion Papers 4719, C.E.P.R. Discussion Papers.
  13. Mary Amiti & Shang-Jin Wei, 2005. "Fear of service outsourcing: is it justified?," Economic Policy, CEPR;CES;MSH, vol. 20(42), pages 308-347, 04.
  14. Mary Amiti & Shang-Jin Wei, 2004. "Fear of Service Outsourcing," IMF Working Papers 04/186, International Monetary Fund.
  15. Paul A. Samuelson, 2004. "Where Ricardo and Mill Rebut and Confirm Arguments of Mainstream Economists Supporting Globalization," Journal of Economic Perspectives, American Economic Association, vol. 18(3), pages 135-146, Summer.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Steven B. Kamin & Trevor A. Reeve & Nathan Sheets, 2007. "U.S. external adjustment: is it disorderly? Is it unique? Will it disrupt the rest of the world?," International Finance Discussion Papers 892, Board of Governors of the Federal Reserve System (U.S.).
  2. Oldenski, Lindsay, 2012. "Export Versus FDI and the Communication of Complex Information," Journal of International Economics, Elsevier, vol. 87(2), pages 312-322.
  3. Barry Eichengreen & Poonam Gupta, . "The Service Sector as India's Road to Economic Growth?," Indian Council for Research on International Economic Relations, New Delhi Working Papers 249, Indian Council for Research on International Economic Relations, New Delhi, India.
  4. Suparna Karmakar, 2008. "An Open Services Regime Recipe for Jobless Growth?," Working Papers id:1724, eSocialSciences.
  5. Barry Eichengreen & Poonam Gupta, 2009. "The Two Waves of Service-Sector Growth," Working Papers id:1934, eSocialSciences.
  6. Schrader, Klaus & Laaser, Claus-Friedrich, 2009. "Globalisierung in der Wirtschaftskrise: wie sicher sind die Jobs in Deutschland?," Kiel Discussion Papers 465, Kiel Institute for the World Economy (IfW).
  7. Engler, Philipp & Fidora, Michael & Thimann, Christian, 2007. "External imbalances and the US current account: how supply-side changes affect an exchange rate adjustment," Working Paper Series 0761, European Central Bank.
  8. Barry Eichengreen & Poonam Gupta, 2011. "The Service Sector as India's Road to Economic Growth," NBER Working Papers 16757, National Bureau of Economic Research, Inc.
  9. N. Gregory Mankiw & Phillip Swagel, 2006. "The Politics and Economics of Offshore Outsourcing," Harvard Institute of Economic Research Working Papers 2120, Harvard - Institute of Economic Research.
  10. Hoekman, Bernard & Mattoo, Aaditya, 2008. "Services trade and growth," Policy Research Working Paper Series 4461, The World Bank.
  11. Florence Jaumotte & Irina Tytell, 2007. "How Has the Globalization of Labor Affected the Labor Income Share in Advanced Countries?," IMF Working Papers 07/298, International Monetary Fund.
  12. Alexander Vogel, 2009. "Exporter Performance in the German Business Services Sector: First Evidence from the Services Statistics Panel," Working Paper Series in Economics 111, University of Lüneburg, Institute of Economics.
  13. Hong, Chang, 2012. "Trade liberalization, wages, and specialization in China," Journal of the Japanese and International Economies, Elsevier, vol. 26(4), pages 561-577.
  14. repec:nbr:nberwo:12799 is not listed on IDEAS
  15. Martin Borowiecki & Bernhard Dachs & Doris Hanzl-Weiss & Steffen Kinkel & Johannes Pöschl & Magdolna Sass & Thomas Christian Schmall & Robert Stehrer & Andrea Szalavetz, 2012. "Global Value Chains and the EU Industry," wiiw Research Reports 383, The Vienna Institute for International Economic Studies, wiiw.
  16. Bernard Hoekman, 2008. "The General Agreement on Trade in Services: Doomed to Fail? Does it Matter?," Journal of Industry, Competition and Trade, Springer, vol. 8(3), pages 295-318, December.
  17. Benoit A. Aubert & Suzanne Rivard & Mathieu Templier, 2009. "The Impact of Distance on Offshore Business Relationships," CIRANO Working Papers 2009s-05, CIRANO.
  18. Iacovone, Leonardo & Mattoo, Aaditya & Zahler, Andres, 2013. "Trade and innovation in services : evidence from a developing economy," Policy Research Working Paper Series 6520, The World Bank.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:iie:wpaper:wp05-9. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Peterson Institute webmaster).

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.