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

Outsourcing and Technological Change

Contents:

Author Info

  • Ann Bartel
  • Saul Lach
  • Nachum Sicherman

Abstract

In this paper we argue that an important source of the recent increase in outsourcing is the computer and information technology revolution, characterized by increased rates of technological change. Our model shows that an increase in the pace of technological change increases outsourcing because it allows firms to use services based on leading edge technologies without incurring the sunk costs of adopting these new technologies. In addition, firms using more IT-intensive technologies face lower outsourcing costs of IT-based services generating a positive correlation between the IT level of the user and its outsourcing share of IT-based services. This implication is verified in the data.

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.nber.org/papers/w11158.pdf
Download Restriction: no

Bibliographic Info

Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 11158.

as in new window
Length:
Date of creation: Feb 2005
Date of revision:
Handle: RePEc:nbr:nberwo:11158

Note: LS PR
Contact details of provider:
Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.
Phone: 617-868-3900
Email:
Web page: http://www.nber.org
More information through EDIRC

Related research

Keywords:

Other versions of this item:

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. Antras, Pol, 2005. "Property Rights and the International Organization of Production," Scholarly Articles, Harvard University Department of Economics 3196326, Harvard University Department of Economics.
  2. Carmen Díaz-Mora, 2005. "DETERMINANTS OF OUTSOURCING PRODUCTION: A Dynamic Panel Data Approach for Manufacturing Industries," Working Papers, Asociación Española de Economía y Finanzas Internacionales 05-07, Asociación Española de Economía y Finanzas Internacionales.
  3. Pol Antras, 2004. "Incomplete Contracts and the Product Cycle," Econometric Society 2004 North American Summer Meetings, Econometric Society 62, Econometric Society.
  4. Grossman, Sanford J & Hart, Oliver, 1985. "The Cost and Benefits of Ownership: A Theory of Vertical and Lateral Integration," CEPR Discussion Papers, C.E.P.R. Discussion Papers 70, C.E.P.R. Discussion Papers.
  5. Abraham, Katharine G & Taylor, Susan K, 1996. "Firms' Use of Outside Contractors: Theory and Evidence," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 14(3), pages 394-424, July.
  6. Yukako Ono, 2000. "Outsourcing Business Service and the Scope of Local Markets," Working Papers, Center for Economic Studies, U.S. Census Bureau 00-14, Center for Economic Studies, U.S. Census Bureau.
  7. David H. Autor, 2001. "Why Do Temporary Help Firms Provide Free General Skills Training?," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 116(4), pages 1409-1448, November.
  8. Yukako Ono, 2001. "Outsourcing Business Service and the Scope of Local Markets," Working Papers, Center for Economic Studies, U.S. Census Bureau 01-15, Center for Economic Studies, U.S. Census Bureau.
  9. C. Lanier Benkard, 2000. "Learning and Forgetting: The Dynamics of Aircraft Production," American Economic Review, American Economic Association, American Economic Association, vol. 90(4), pages 1034-1054, September.
  10. David H. Autor, 2000. "Outsourcing at Will: Unjust Dismissal Doctrine and the Growth of Temporary Help Employment," NBER Working Papers, National Bureau of Economic Research, Inc 7557, National Bureau of Economic Research, Inc.
  11. Alla Lileeva & Johannes Van Biesebroeck, 2013. "Outsourcing When Investments Are Specific And Interrelated," Journal of the European Economic Association, European Economic Association, European Economic Association, vol. 11(4), pages 871-896, 08.
  12. Marcello M. Estevao & Saul Lach, 1999. "The Evolution of the Demand for Temporary Help Supply Employment in the United States," NBER Working Papers, National Bureau of Economic Research, Inc 7427, National Bureau of Economic Research, Inc.
  13. Lewis, Tracy R & Sappington, David E M, 1991. "Technological Change and the Boundaries of the Firm," American Economic Review, American Economic Association, American Economic Association, vol. 81(4), pages 887-900, September.
  14. Cohen, Wesley M & Levinthal, Daniel A, 1989. "Innovation and Learning: The Two Faces of R&D," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 99(397), pages 569-96, September.
  15. Holger Görg & Aoife Hanley, 2011. "Services Outsourcing And Innovation: An Empirical Investigation," Economic Inquiry, Western Economic Association International, Western Economic Association International, vol. 49(2), pages 321-333, 04.
  16. Susan N. Houseman, 2000. "Why Employers Use Flexible Staffing Arrangements: Evidence from an Establishment Survey," Upjohn Working Papers and Journal Articles, W.E. Upjohn Institute for Employment Research 01-67, W.E. Upjohn Institute for Employment Research.
  17. Ann Bartel & Casey Ichniowski & Kathryn Shaw, 2007. "How Does Information Technology Affect Productivity? Plant-Level Comparisons of Product Innovation, Process Improvement, and Worker Skills," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 122(4), pages 1721-1758, November.
  18. Lach, Saul & Schankerman, Mark, 1989. "Dynamics of R&D and Investment in the Scientific Sector," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 97(4), pages 880-904, August.
  19. George P. Baker & Thomas N. Hubbard, 2003. "Make Versus Buy in Trucking: Asset Ownership, Job Design, and Information," American Economic Review, American Economic Association, American Economic Association, vol. 93(3), pages 551-572, June.
  20. Thomas N. Hubbard, 2008. "Viewpoint: Empirical research on firms' boundaries," Canadian Journal of Economics, Canadian Economics Association, Canadian Economics Association, vol. 41(2), pages 341-359, May.
  21. Timothy F. Bresnahan & Erik Brynjolfsson & Lorin M. Hitt, 1999. "Information Technology, Workplace Organization and the Demand for Skilled Labor: Firm-Level Evidence," NBER Working Papers, National Bureau of Economic Research, Inc 7136, National Bureau of Economic Research, Inc.
  22. Gene M. Grossman & Elhanan Helpman, 2002. "Outsourcing versus FDI in Industry Equilibrium," Working Papers, Princeton University, Woodrow Wilson School of Public and International Affairs, Discussion Papers in Economics. 148, Princeton University, Woodrow Wilson School of Public and International Affairs, Discussion Papers in Economics..
  23. Marcello Estevao & Saul Lach, 1999. "Measuring temporary labor outsourcing in U.S. manufacturing," Finance and Economics Discussion Series, Board of Governors of the Federal Reserve System (U.S.) 1999-57, Board of Governors of the Federal Reserve System (U.S.).
  24. Susan N. Houseman, . "Why Employers Use Flexible Staffing Arrangements: Evidence from an Establishment Survey," Upjohn Working Papers and Journal Articles, W.E. Upjohn Institute for Employment Research snh2001, W.E. Upjohn Institute for Employment Research.
  25. Nathan Nunn, 2005. "Relationship Specificity, Incomplete Contracts and the Pattern of Trade," International Trade, EconWPA 0512018, EconWPA.
  26. Mary Amiti & Shang-Jin Wei, 2006. "Service Offshoring and Productivity: Evidence from the United States," NBER Working Papers, National Bureau of Economic Research, Inc 11926, National Bureau of Economic Research, Inc.
  27. Welch, F, 1970. "Education in Production," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 78(1), pages 35-59, Jan.-Feb..
  28. Robert C. Feenstra & Gordon H. Hanson, 1999. "The Impact Of Outsourcing And High-Technology Capital On Wages: Estimates For The United States, 1979-1990," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 114(3), pages 907-940, August.
  29. Susan N. Houseman & Anne E. Polivka, 1999. "The Implications of Flexible Staffing Arrangements for Job Stability," Upjohn Working Papers and Journal Articles, W.E. Upjohn Institute for Employment Research 99-56, W.E. Upjohn Institute for Employment Research.
  30. Aghion, Philippe & Howitt, Peter & Violante, Giovanni L, 2000. "General Purpose Technology and Within-Group Inequality," CEPR Discussion Papers, C.E.P.R. Discussion Papers 2474, C.E.P.R. Discussion Papers.
  31. Allen, Steven G, 2001. "Technology and the Wage Structure," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 19(2), pages 440-83, April.
  32. Laura Abramovsky & Rachel Griffith, 2005. "Outsourcing and offshoring of business services: how important is ICT?," IFS Working Papers, Institute for Fiscal Studies W05/22, Institute for Fiscal Studies.
  33. Gibbons, Robert, 2005. "Four forma(lizable) theories of the firm?," Journal of Economic Behavior & Organization, Elsevier, Elsevier, vol. 58(2), pages 200-245, October.
  34. Daniel K.N. Johnson, 2002. "The OECD Technology Concordance (OTC): Patents by Industry of Manufacture and Sector of Use," OECD Science, Technology and Industry Working Papers, OECD Publishing 2002/5, OECD Publishing.
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:
This item has more than 25 citations. To prevent cluttering this page, these citations are listed on a separate page.

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:nbr:nberwo:11158. 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: ().

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.