Time Zones, Shift Working and Outsourcing through Communications Networks
We build a trade model with two countries located in different time zones, a monopolistically competitive sector in which production requires differentiated goods produced using day and night labor, and shift working disutility. Consumers choose between working at a day shift or a night shift and firms may choose to “virtually” outsource foreign day time labor by using communications services. We found that the higher the disutility of working at night is, the smaller is the number of varieties produced. Trade is beneficial only under certain concavity and cost conditions. The higher the disutility of working at night, the larger can be the gains from trade.
|Date of creation:||Feb 2009|
|Contact details of provider:|| Postal: Ludwigstraße 33, D-80539 Munich, Germany|
Web page: https://mpra.ub.uni-muenchen.de
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Richard G. Harris, 1995. "Trade and Communication Costs," Canadian Journal of Economics, Canadian Economics Association, vol. 28(s1), pages 46-75, November.
- Ethier, Wilfred, 1979. "Internationally decreasing costs and world trade," Journal of International Economics, Elsevier, vol. 9(1), pages 1-24, February.
- Dixit, Avinash K & Stiglitz, Joseph E, 1977.
"Monopolistic Competition and Optimum Product Diversity,"
American Economic Review,
American Economic Association, vol. 67(3), pages 297-308, June.
- Dixit, Avinash K & Stiglitz, Joseph E, 1975. "Monopolistic Competition and Optimum Product Diversity," The Warwick Economics Research Paper Series (TWERPS) 64, University of Warwick, Department of Economics.
- Kostiuk, Peter F, 1990. "Compensating Differentials for Shift Work," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 1054-1075, October.
- Fukushima, Marcelo & Kikuchi, Toru, 2008. "A Simple Model of Trade with Heterogeneous Firms and Trade Policy," MPRA Paper 9573, University Library of Munich, Germany.
- Lanfranchi, Joseph & Ohlsson, Henry & Skalli, Ali, 2002.
"Compensating wage differentials and shift work preferences,"
Elsevier, vol. 74(3), pages 393-398, February.
- Lanfranchi, Joseph & Ohlsson, Henry & Skalli, Ali, 2001. "COMPENSATING WAGE DIFFERENTIALS AND SHIFT WORK PREFERENCES. Evidence from France," Working Papers in Economics 55, University of Gothenburg, Department of Economics.
- Toru Kikuchi, 2009. "Time Zones as a Source of Comparative Advantage," Review of International Economics, Wiley Blackwell, vol. 17(5), pages 961-968, November.
- Marjit, Sugata, 2007. "Trade theory and the role of time zones," International Review of Economics & Finance, Elsevier, vol. 16(2), pages 153-160.
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:13355. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joachim Winter)
If references are entirely missing, you can add them using this form.