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Immigration, Offshoring, and American Jobs

Author

Listed:
  • Gianmarco I. P. Ottaviano
  • Giovanni Peri
  • Greg C. Wright

Abstract

Following Grossman and Rossi-Hansberg (2008) we present a model in which tasks of varying complexity are matched to workers of varying skill in order to develop and test predictions regarding the effects of immigration and offshoring on US native-born workers. We find that immigrant and native-born workers do not compete much due to the fact that they tend to perform tasks at opposite ends of the task complexity spectrum, with offshore workers performing the tasks in the middle. An effect of offshoring and a positive effect of immigration on native-born employment suggest that immigration and offshoring improve industry efficiency.

Suggested Citation

  • Gianmarco I. P. Ottaviano & Giovanni Peri & Greg C. Wright, 2013. "Immigration, Offshoring, and American Jobs," American Economic Review, American Economic Association, vol. 103(5), pages 1925-1959, August.
  • Handle: RePEc:aea:aecrev:v:103:y:2013:i:5:p:1925-59
    Note: DOI: 10.1257/aer.103.5.1925
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    More about this item

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • L24 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Contracting Out; Joint Ventures

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