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Employment effects of offshoring. An application to Japanese industries, 1980-2005

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  • Pablo, Agnese

Abstract

This paper estimates the possible effects of offshoring on Japanese employment. Both the positive and negative effects are here considered as a result of both the offshoring of production (or materials) and services. My main finding is that the net amount of jobs lost to offshoring during the past two and a half decades is negligible, as it was the role of offshoring as a source of sector-bias change in an era of major structural changes for Japan. I argue that, as a natural result of trade and profit-seeking, the positive and negative forces entailed in the relocation of activities worldwide tend to compensate each other. Further, the evidence presented here hints at the possibility of skill upgrading only as a result of services offshoring.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 16506.

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Date of creation: 20 Jul 2009
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Handle: RePEc:pra:mprapa:16506

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Keywords: offshoring; employment; Japan; deindustrialization;

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  1. Alexander HIJZEN & INUI Tomohiko & TODO Yasuyuki, 2007. "Does Offshoring Pay? Firm-Level Evidence from Japan," Discussion papers 07005, Research Institute of Economy, Trade and Industry (RIETI).
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  8. Elizabeth Webster, 2003. "The Effects of Wages on Aggregate Employment: A Brief Summary of Empirical Studies," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 36(1), pages 134-142.
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Cited by:
  1. KWON Hyeog Ug, 2012. "Offshoring of Japanese Small and Medium Enterprises (Japanese)," Discussion Papers (Japanese) 12004, Research Institute of Economy, Trade and Industry (RIETI).

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