This file is part of IDEAS, which uses RePEc data


[ Papers | Articles | Software | Books | Chapters | Authors | Institutions | JEL Classification | NEP reports | Search | New papers by email | Author registration | Rankings | Volunteers | FAQ | Blog | Help! ]

Offshoring, Outsourcing, and Production Relocation—Labor-Market Effects in the OECD Countries and Developing Asia

Author info | Abstract | Publisher info | Download info | Related research | Statistics
Author Info
Jacob Funk Kirkegaard () (Peterson Institute for International Economics)
Abstract

This working paper evaluates the validity of available data on and the extent of the impact of offshoring on service-sector labor markets in the United States, EU-15, and Japan. A three-tier data validity hierarchy is identified. The impact of offshoring on employment in the three regions is found to be limited. Correspondingly, developing Asia is unlikely to experience large employment gains as a destination region. The paper highlights the case of the Indian IT industry, where the majority of job creation has been in local Indian companies rather than foreign multinationals. Domestic entrepreneurs have played a crucial role in the growth of the Indian IT-related service industry. However, increased tradability of services and associated skill bias in favor of higher skilled workers could have an uneven employment impact on developing Asia. Some high-skilled groups are benefiting and will continue to benefit dramatically from new employment opportunities and rising wage levels. Meanwhile, the same skill bias may eliminate many employment opportunities for unskilled or low-skilled groups in the region. Developing Asian countries therefore face a double educational challenge in the coming years: the need to simultaneously improve both primary aCreation-Date: 2006-06

Download Info
To download:

If you experience problems downloading a file, check if you have the proper application to view it first. Information about this may be contained in the File-Format links below. 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/wp07-2.pdf
File Format: application/pdf
File Function:
Download Restriction: no

Publisher Info
Paper provided by Peterson Institute for International Economics in its series Peterson Institute Working Paper Series with number WP07-02.

Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Length:
Date of creation: Apr 2007
Date of revision:
Handle: RePEc:iie:wpaper:wp07-2

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.petersoninstitute.org/
More information through EDIRC

For technical questions regarding this item, or to correct its listing, contact: (Helen Hillebrand).

Related research
Keywords: Service Sectors; Offshoring; Production Relocation; Data Source Validity; Automation; Highly Skilled Workers;

Other versions of this item:

Find related papers by JEL classification:
F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure

This paper has been announced in the following NEP Reports:

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.:
  1. Mihir A. Desai & C. Fritz Foley & James R. Hines, 2005. "Foreign Direct Investment and the Domestic Capital Stock," American Economic Review, American Economic Association, vol. 95(2), pages 33-38, May. [Downloadable!]
    Other versions:
  2. Pawan Agarwal, 2006. "Higher Education in India: The Need for Change," Working Papers id:576, esocialsciences.com. [Downloadable!]
  3. Alan S. Blinder, 2005. "Fear of Offshoring," Working Papers 83, Princeton University, Department of Economics, Center for Economic Policy Studies.. [Downloadable!]
  4. Jagdish Bhagwati & Arvind Panagariya & T. N. Srinivasan, 2004. "The Muddles over Outsourcing," Journal of Economic Perspectives, American Economic Association, vol. 18(4), pages 93-114, Fall. [Downloadable!] (restricted)
    Other versions:
  5. Robert C. Feenstra, . "Integration Of Trade And Disintegration Of Production In The Global Economy," Department of Economics 98-06, California Davis - Department of Economics. [Downloadable!]
    Other versions:
  6. 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. [Downloadable!] (restricted)
    Other versions:
  7. Richard B. Freeman, 2006. "Labor market imbalances: shortages, or surpluses, or fish stories?," Conference Series ; [Proceedings], Federal Reserve Bank of Boston. [Downloadable!]
  8. C. Alan Garner, 2004. "Offshoring in the service sector : economic impact and policy issues," Economic Review, Federal Reserve Bank of Kansas City, issue Q III, pages 5-37. [Downloadable!]
  9. Ark, Bart van, 2005. "Does the European Union need to revive productivity growth," GGDC Research Memorandum 200575, Groningen Growth and Development Centre, University of Groningen. [Downloadable!]
  10. Dale W. Jorgenson & Kevin J. Stiroh, 2000. "Raising the Speed Limit: US Economic Growth in the Information Age," OECD Economics Department Working Papers 261, OECD, Economics Department. [Downloadable!]
    Other versions:
  11. David Autor & Frank Levy & Richard Murnane, 2003. "The skill content of recent technological change: an empirical exploration," Proceedings, Federal Reserve Bank of San Francisco, issue Nov. [Downloadable!]
    Other versions:
  12. David H. Autor & Lawrence F. Katz & Alan B. Krueger, 1998. "Computing Inequality: Have Computers Changed The Labor Market?," The Quarterly Journal of Economics, MIT Press, vol. 113(4), pages 1169-1213, November. [Downloadable!] (restricted)
    Other versions:
  13. Ashok Bardhan & Cynthia Kroll, 2003. "The New Wave of Outsourcing," Fisher Center for Real Estate & Urban Economics, Research Reports 1025, Fisher Center for Real Estate & Urban Economics, UC Berkeley. [Downloadable!]
  14. Martin S. Feldstein, 1995. "The Effects of Outbound Foreign Direct Investment on the Domestic Capital Stock," NBER Chapters, in: The Effects of Taxation on Multinational Corporations, pages 43-66 National Bureau of Economic Research, Inc. [Downloadable!]
    Other versions:
  15. Falk, Martin & Koebel, Bertrand M., 2004. "The impact of office machinery, and computer capital on the demand for heterogeneous labour," Labour Economics, Elsevier, vol. 11(1), pages 99-117, February. [Downloadable!] (restricted)
    Other versions:
  16. Aaditya Mattoo & Sacha Wunsch-Vincent, 2004. "Pre-Empting Protectionism in Services: The GATS and Outsourcing," Journal of International Economic Law, Oxford University Press, vol. 7(4), pages 765-800, December.
  17. William J. Zeile, 2003. "Trade in Goods Within Multinational Companies: Survey-Based Data and Findings for the United States of America," BEA Papers 0022, Bureau of Economic Analysis. [Downloadable!]
Full references

Statistics
Access and download statistics

Did you know? There are NEP reports in over 80 fields that deliver new research to your email.

This page was last updated on 2009-11-23.

This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.