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A Structural Estimation of the Employment Effects of Offshoring in the U.S. Labor Market

  • Wei, Xuan
  • Meng, Xianwei
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    The value of statistical life (VSL) is one of the most scrutinized and controversial parameters estimated by environmental economists (Cameron 2009, Viscusi 2010), largely due to the wide use of VSL estimates to value the mortality risk benefits of regulations that affect public health and safety (OMB 2011, Robinson and Hammitt 2010). The hedonic wage method has been a primary source of VSL estimates for use in applied benefit‐cost analysis and there have been several meta‐analyses of these studies, including examinations of publication bias. We build on the existing literature by focusing on the coefficient on fatal risk rather than the VSL itself. This allows for larger sample sizes and reflects more recent methods that provide a cleaner test for bias. Results suggest that publication bias is present in the full sample of hedonic wage VSL estimates and that correcting for this by using those observations with the most precise estimates results in lower mean VSL estimates.

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    File URL: http://purl.umn.edu/150730
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    Paper provided by Agricultural and Applied Economics Association in its series 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. with number 150730.

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    Date of creation: 2013
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    Handle: RePEc:ags:aaea13:150730
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    1. Alan S. Blinder & Alan B. Krueger, 2009. "Alternative Measures of Offshorability: A Survey Approach," NBER Working Papers 15287, National Bureau of Economic Research, Inc.
    2. Gene M. Grossman & Esteban Rossi-Hansberg, 2008. "Trading Tasks: A Simple Theory of Offshoring," American Economic Review, American Economic Association, vol. 98(5), pages 1978-97, December.
    3. Rosario Crinò, 2009. "Employment Effects of Service Offshoring: Evidence from Matched Firms," UFAE and IAE Working Papers 800.09, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
    4. Avraham Ebenstein & Ann Harrison & Margaret McMillan & Shannon Phillips, 2009. "Estimating the Impact of Trade and Offshoring on American Workers Using the Current Population Surveys," Discussion Papers Series, Department of Economics, Tufts University 0742, Department of Economics, Tufts University.
    5. Chiara Criscuolo & Luis Garicano, 2010. "Offshoring and Wage Inequality: Using Occupational Licensing as a Shifter of Offshoring Costs," American Economic Review, American Economic Association, vol. 100(2), pages 439-43, May.
    6. David Autor & Frank Levy & Richard Murnane, 2003. "The skill content of recent technological change: an empirical exploration," Proceedings, Federal Reserve Bank of San Francisco, issue Nov.
    7. Bardhan, Ashok Deo & Kroll, Cynthia, 2003. "The New Wave of Outsourcing," Fisher Center for Real Estate & Urban Economics, Research Reports qt02f8z392, Fisher Center for Real Estate & Urban Economics, UC Berkeley.
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