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Offshoring of American Jobs: What Response from U.S. Economic Policy?

Editor

Listed:
  • Benjamin M. Friedman
    ()

    (Harvard University)

Author

Listed:
  • Jagdish Bhagwati

    () (Columbia University)

  • Alan S. Blinder

    () (Princeton University)

Abstract

It is no surprise that many fearful American workers see the call center operator in Bangalore or the factory worker in Guangzhou as a threat to their jobs. The emergence of China and India (along with other, smaller developing countries) as economic powers has doubled the supply of labor to the integrated world economy. Economic theory suggests that such a dramatic increase in the supply of labor without an accompanying increase in the supply of capital is likely to exert downward pressure on wages for workers already in the integrated world economy, and wages for most workers in the United States have indeed stagnated or declined. In this book, leading economists Jagdish Bhagwati and Alan S. Blinder offer their perspectives on how the outsourcing of labor and the shifting of jobs to lower-wage countries affect the U.S. economy and what, if any, policy responses are required. Bhagwati, in his colorful and pithy style, focuses on globalization and free trade, while Blinder, erudite and witty, addresses the significance of labor market adjustment caused by trade. Bhagwati's and Blinder's contributions are followed by comments from economists Richard Freedman, Douglas A. Irwin, Lori G. Kletzer, and Robert Z. Lawrence. Bhagwati and Blinder then respond separately to the issues raised. Benjamin Friedman, who edited this volume (and organized the symposium that inspired it), provides an introduction. Alvin Hansen Symposium on Public Policy at Harvard University

Suggested Citation

  • Jagdish Bhagwati & Alan S. Blinder, 2009. "Offshoring of American Jobs: What Response from U.S. Economic Policy?," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262013320 edited by Benjamin M. Friedman, January.
  • Handle: RePEc:mtp:titles:0262013320
    as

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    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
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    Cited by:

    1. Vallizadeh E. & Muysken J. & Ziesemer T.H.W., 2015. "Offshoring of medium-skill jobs, polarization, and productivity effect: Implications for wages and low-skill unemployment," MERIT Working Papers 004, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    2. Janet Koech & Mark A. Wynne, 2017. "Diversification and Specialization of U.S. States," The Review of Regional Studies, Southern Regional Science Association, vol. 47(1), pages 63-91, Winter.
    3. Gerda Dewit & Holger Görg & Yama Temouri, 2013. "Employment Protection and Relocation with Firm Heterogeneity," Economics, Finance and Accounting Department Working Paper Series n234-13.pdf, Department of Economics, Finance and Accounting, National University of Ireland - Maynooth.
    4. Alan S. Blinder & Alan B. Krueger, 2013. "Alternative Measures of Offshorability: A Survey Approach," Journal of Labor Economics, University of Chicago Press, vol. 31(S1), pages 97-128.
    5. Dewit, Gerda & Görg, Holger & Temouri, Yama, 2018. "Employment protection and firm relocation: Theory and evidence," Kiel Working Papers 2102, Kiel Institute for the World Economy (IfW).
    6. repec:pri:cepsud:190blinder is not listed on IDEAS
    7. Vallizadeh, Ehsan & Muysken, Joan & Ziesemer, Thomas, 2016. "Offshoring medium-skill tasks, low-skill unemployment and the skill-wage structure," MERIT Working Papers 070, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    8. Michael Pflüger, 2014. "Services, Comparative Advantage and Agglomeration of Economic Activity: A Ricardo-Marshall Model," ERSA conference papers ersa14p1347, European Regional Science Association.
    9. Pflüger, Michael & Tabuchi, Takatoshi, 2014. "Services, Comparative Advantage and Agglomeration of Economic Activity: A Ricardo-Marshall Model," Annual Conference 2014 (Hamburg): Evidence-based Economic Policy 100323, Verein für Socialpolitik / German Economic Association.
    10. van der Marel, Erik, 2011. "Determinants of comparative advantage in services," LSE Research Online Documents on Economics 38993, London School of Economics and Political Science, LSE Library.
    11. Tuhkuri, Joonas, 2016. "Globalization Threatens One Quarter of Finnish Employment," ETLA Brief 46, The Research Institute of the Finnish Economy.

    More about this item

    Keywords

    outsourcing; labor; globalization; free trade; policy;

    JEL classification:

    • F2 - International Economics - - International Factor Movements and International Business
    • J0 - Labor and Demographic Economics - - General

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