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Offshoring and working hours adjustments in a within-firm labor market

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  • Endoh, Masahiro

Abstract

Although a growing body of literature identifies the within-firm redistribution effects of trade, research on the adjustment processes in within-firm labor markets remains scarce. This study analyzes the within-firm adjustment of working hours and wages by considering workers’ educational background and gender in response to a change in offshoring. Matched worker–firm panel data in the Japanese manufacturing sector covering 1998 to 2014 are used. The analysis leads to the following three observations. First, offshoring does not significantly alter the skill premium and gender gap in terms of scheduled monthly salaries and scheduled hourly wages. Second, offshoring decreases skill premium in annual hourly wages, whereas it increases gender gap in annual salaries. Third, this uneven impact on annual variables arises from the different changes in overtime working hours: college graduates work longer with a lower overtime premium, whereas female workers do not increase overtime work.

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  • 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).
    • Handle: RePEc:eee:jjieco:v:60:y:2021:i:c:s0889158321000113
    DOI: 10.1016/j.jjie.2021.101132
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    3. Endoh, Masahiro, 2021. "The effect of import competition on labor income inequality through firm and worker heterogeneity in the Japanese manufacturing sector," Japan and the World Economy, Elsevier, vol. 59(C).

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    More about this item

    Keywords

    Offshoring; Overtime; Salary; Wage; Working hours;
    All these keywords.

    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • F66 - International Economics - - Economic Impacts of Globalization - - - Labor
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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