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Global Engagement, Complex Tasks and the Distribution of Occupational Employment

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  • Carl Davidson
  • Fredrik Heyman
  • Steven Matusz
  • Fredrik Sjöholm
  • Susan Chun Zhu

Abstract

Building on a framework introduced by Chaney and Ossa (2013), we construct a task-based model of the firm’s choice of occupational inputs to examine how that choice varies with greater global engagement. We depart from Chaney and Ossa by assuming that more complex tasks are more costly to complete. Within the structure of our model, firms skew employment toward occupations engaged in more complex tasks. Moreover, the distribution of employment is more skewed for more globalized firms, while it is less skewed for larger firms. These results are consistent with our empirical findings in Davidson, et al (2015).
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Suggested Citation

  • Carl Davidson & Fredrik Heyman & Steven Matusz & Fredrik Sjöholm & Susan Chun Zhu, 2016. "Global Engagement, Complex Tasks and the Distribution of Occupational Employment," Review of International Economics, Wiley Blackwell, vol. 24(4), pages 717-736, September.
    • Handle: RePEc:bla:reviec:v:24:y:2016:i:4:p:717-736
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    References listed on IDEAS

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    1. Amiti, Mary & Cameron, Lisa, 2012. "Trade Liberalization and the Wage Skill Premium: Evidence from Indonesia," Journal of International Economics, Elsevier, vol. 87(2), pages 277-287.
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    7. Becker, Sascha O. & Ekholm, Karolina & Muendler, Marc-Andreas, 2013. "Offshoring and the onshore composition of tasks and skills," Journal of International Economics, Elsevier, vol. 90(1), pages 91-106.
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    Cited by:

    1. Davidson, Carl & Heyman, Fredrik & Matusz, Steven & Sjöholm, Fredrik & Zhu, Susan Chun, 2017. "Global engagement and the occupational structure of firms," European Economic Review, Elsevier, vol. 100(C), pages 273-292.

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    More about this item

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • F66 - International Economics - - Economic Impacts of Globalization - - - Labor

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