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Immigration, offshoring, and American jobs

Listed author(s):
  • Gianmarco I. P. Ottaviano
  • Giovanni Peri
  • Gregory Wright

Following Grossman and Rossi-Hansberg (2008) we present a model in which tasks of varying complexity are matched to workers of varying skill in order to develop and test predictions regarding the effects of immigration and offshoring on US native-born workers. We find that immigrant and native-born workers do not compete much due to the fact that they tend to perform tasks at opposite ends of the task complexity spectrum, with offshore workers performing the tasks in the middle. An effect of offshoring and a positive effect of immigration on native-born employment suggest that immigration and offshoring improve industry efficiency.

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File URL: http://eprints.lse.ac.uk/48819/
File Function: Open access version.
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Paper provided by London School of Economics and Political Science, LSE Library in its series LSE Research Online Documents on Economics with number 48819.

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Date of creation: Aug 2013
Publication status: Published in American Economic Review, August, 2013, 103(5), pp. 1925-1959. ISSN: 0002-8282
Handle: RePEc:ehl:lserod:48819
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  1. Gianmarco I. P. Ottaviano & Giovanni Peri & Greg C. Wright, 2013. "Immigration, Offshoring, and American Jobs," American Economic Review, American Economic Association, vol. 103(5), pages 1925-1959, August.
  2. Becker, Sascha O. & Ekholm, Karolina & Muendler, Marc-Andreas, 2009. "Offshoring and the Onshore Composition of Tasks and Skills," CEPR Discussion Papers 7391, C.E.P.R. Discussion Papers.
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