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Task trade and the employment pattern: the offshoring and onshoring of Brazilian firms

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  • Philipp Ehrl

Abstract

This paper studies the effect of an expansion of imported intermediate inputs on establishments’ average task intensities and employment size in a middle-income country. I use confidential matched employer-employee data and information on trade transactions for the universe of Brazilian firms. Propensity Score Matching indicates that import expansion leads to an overall employment growth, higher intensities in routine and non-routine manual tasks and an increased share of intermediates exports. Thus our findings point out that intermediates imports represent onshored instead of offshored tasks. This result remains unchanged regardless of whether imports from high- or low-wage countries are considered.

Suggested Citation

  • Philipp Ehrl, 2014. "Task trade and the employment pattern: the offshoring and onshoring of Brazilian firms," Working Papers 151, Bavarian Graduate Program in Economics (BGPE).
  • Handle: RePEc:bav:wpaper:151_ehrl
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    Cited by:

    1. Wright, Greg C., 2014. "Revisiting the employment impact of offshoring," European Economic Review, Elsevier, vol. 66(C), pages 63-83.
    2. Ehrl, Philipp & Monteiro Monasterio, Leonardo, 2016. "Historical trades, skills and agglomeration economies," MPRA Paper 69829, University Library of Munich, Germany.

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    More about this item

    Keywords

    task trade; offshoring; onshoring; Brazil;
    All these keywords.

    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean

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