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Demand for skills in Canada: the role of foreign outsourcing and information-communication technology

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  • Beiling Yan

Abstract

One of the defining features of the Canadian Economy in the last two decades has been an increasing wage gap between the more skilled and the less skilled workers. Over the same period, there have been dramatic increases in expenditures on information and communication technologies (ICT) and in purchases of foreign intermediate inputs. This raises an obvious and important question: what is the role of ICT and foreign outsourcing in the increased demand for skilled workers? Using 84 Canadian manufacturing industries over 1981-96, we find that both ICT and foreign outsourcing are important contributors to the demand for skills.

Suggested Citation

  • Beiling Yan, 2006. "Demand for skills in Canada: the role of foreign outsourcing and information-communication technology," Canadian Journal of Economics, Canadian Economics Association, vol. 39(1), pages 53-67, February.
    • Handle: RePEc:cje:issued:v:39:y:2006:i:1:p:53-67
    DOI: 10.1111/j.0008-4085.2006.00338.x
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    Cited by:

    1. Ludo Cuyvers & Emmanuel Dhyne & Reth Soeng, 2010. "The effects of internationalisation on domestic labour demand by skills : Firm-level evidence for Belgium," Working Paper Research 206, National Bank of Belgium.
    2. Rosario Crinò, 2009. "Offshoring, Multinationals And Labour Market: A Review Of The Empirical Literature," Journal of Economic Surveys, Wiley Blackwell, vol. 23(2), pages 197-249, April.
    3. Masahiro Endoh, 2018. "The Effect of Import Competition on Wages in the Japanese Manufacturing Sector," Asian Economic Papers, MIT Press, vol. 17(1), pages 46-67, Winter/Sp.
    4. Beckstead, Desmond Brown, W. Mark Newbold, Bruce, 2008. "Cities and Growth: In Situ Versus Migratory Human Capital Growth," The Canadian Economy in Transition 2008019e, Statistics Canada, Economic Analysis Division.
    5. Sebastian Benz, 2012. "Trading Tasks: A Dynamic Theory of Offshoring," ifo Working Paper Series 150, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    6. Boothby, Daniel & Dufour, Anik & Tang, Jianmin, 2010. "Technology adoption, training and productivity performance," Research Policy, Elsevier, vol. 39(5), pages 650-661, June.
    7. Julie A. Silva, 2008. "International Trade and the Changing Demand for Skilled Workers in High‐Tech Manufacturing," Growth and Change, Wiley Blackwell, vol. 39(2), pages 225-251, June.
    8. Baldwin, John R. Gu, Wulong, 2008. "Impartition et délocalisation au Canada," Série de documents de recherche sur l'analyse économique (AE) 2008055f, Statistics Canada, Direction des études analytiques.
    9. Iammarino, Simona & Rodríguez-Pose, Andrés & Gagliardi, Luisa, 2015. "Offshoring and the Geography of Jobs in Great Britain," CEPR Discussion Papers 10855, C.E.P.R. Discussion Papers.
    10. Rafael Gomez & Morley Gunderson & René Morissette, 2013. "Labour Adjustment Implications of Service Offshoring: Evidence from Canada," British Journal of Industrial Relations, London School of Economics, vol. 51(1), pages 148-173, March.
    11. Jianmin Tang & Henrique Do Livramento, 2010. "Offshoring And Productivity: A Micro‐Data Analysis," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 56(s1), pages 111-134, June.
    12. Endoh, Masahiro, 2021. "Offshoring and working hours adjustments in a within-firm labor market," Journal of the Japanese and International Economies, Elsevier, vol. 60(C).
    13. Masahiro Endoh, 2016. "The Effect of Offshoring on Skill Premiums: Evidence from Japanese Matched Worker-Firm Data," Keio-IES Discussion Paper Series 2016-005, Institute for Economics Studies, Keio University.
    14. Ken-ichi Hashimoto, 2015. "Tariffs, Offshoring and Unemployment in A Two-Country Model," The Japanese Economic Review, Japanese Economic Association, vol. 66(3), pages 371-392, September.
    15. Baldwin, John R. Gu, Wulong, 2008. "Outsourcing and Offshoring in Canada," Economic Analysis (EA) Research Paper Series 2008055e, Statistics Canada, Analytical Studies Branch.
    16. Lars Calmfors & Giancarlo Corsetti & Michael P. Devereux & Gilles Saint-Paul & Hans-Werner Sinn & Jan-Egbert Sturm & Xavier Vives, 2008. "Chapter 3: The effect of globalisation on Western European jobs: curse or blessing?," EEAG Report on the European Economy, CESifo, vol. 0, pages 71-104, February.
    17. Farole, Thomas & Hollweg, Claire & Winkler, Deborah, 2018. "Trade in Global Value Chain: An Assessment of Labor Market Implication," Jobs Group Papers, Notes, and Guides 30318036, The World Bank.
    18. W. Mark Brown & K. Bruce Newbold & Desmond Beckstead, 2010. "Growth and Change in Human Capital across the Canadian Urban Hierarchy, 1996—2001," Urban Studies, Urban Studies Journal Limited, vol. 47(7), pages 1571-1586, June.

    More about this item

    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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