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Employment effects of offshoring. An application to Japanese industries, 1980-2005

  • Pablo, Agnese

This paper estimates the possible effects of offshoring on Japanese employment. Both the positive and negative effects are here considered as a result of both the offshoring of production (or materials) and services. My main finding is that the net amount of jobs lost to offshoring during the past two and a half decades is negligible, as it was the role of offshoring as a source of sector-bias change in an era of major structural changes for Japan. I argue that, as a natural result of trade and profit-seeking, the positive and negative forces entailed in the relocation of activities worldwide tend to compensate each other. Further, the evidence presented here hints at the possibility of skill upgrading only as a result of services offshoring.

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File URL: http://mpra.ub.uni-muenchen.de/16506/1/MPRA_paper_16506.pdf
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 16506.

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Date of creation: 20 Jul 2009
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Handle: RePEc:pra:mprapa:16506
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  1. Head, Keith & Ries, John, 2002. "Offshore production and skill upgrading by Japanese manufacturing firms," Journal of International Economics, Elsevier, vol. 58(1), pages 81-105, October.
  2. Mary Amiti & Shang-Jin Wei, 2005. "Fear of service outsourcing: is it justified?," Economic Policy, CEPR;CES;MSH, vol. 20(42), pages 308-347, 04.
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  4. Alexander Hijzen & Holger Görg & Robert C. Hine, 2004. "International Outsourcing and the Skill Structure of Labour Demand in the United Kingdom," Discussion Papers of DIW Berlin 437, DIW Berlin, German Institute for Economic Research.
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  7. Jose Campa & Linda S. Goldberg, 1997. "The Evolving External Orientation of Manufacturing Industries: Evidence from Four Countries," NBER Working Papers 5919, National Bureau of Economic Research, Inc.
  8. Vanessa Strauss-Kahn, 2003. "The Role of Globalization in the Within-Industry Shift Away from Unskilled Workers in France," NBER Working Papers 9716, National Bureau of Economic Research, Inc.
  9. Hummels, David & Ishii, Jun & Yi, Kei-Mu, 2001. "The nature and growth of vertical specialization in world trade," Journal of International Economics, Elsevier, vol. 54(1), pages 75-96, June.
  10. Marcus Noland & Bela Balassa, 1988. "Japan in the World Economy," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 0412, May.
  11. Tomiura, Eiichi, 2005. "Foreign outsourcing and firm-level characteristics: Evidence from Japanese manufacturers," Journal of the Japanese and International Economies, Elsevier, vol. 19(2), pages 255-271, June.
  12. Gregory Mankiw, N. & Swagel, Phillip, 2006. "The politics and economics of offshore outsourcing," Journal of Monetary Economics, Elsevier, vol. 53(5), pages 1027-1056, July.
  13. Alexander Hijzen & Tomohiko Inui & Yasuyuki Todo, 2010. "Does Offshoring Pay? Firm-Level Evidence From Japan," Economic Inquiry, Western Economic Association International, vol. 48(4), pages 880-895, October.
  14. Mary Amiti & Shang-Jin Wei, 2005. "Service offshoring, Productivity, and Employment; Evidence From the United States," IMF Working Papers 05/238, International Monetary Fund.
  15. Elizabeth Webster, 2003. "The Effects of Wages on Aggregate Employment: A Brief Summary of Empirical Studies," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 36(1), pages 134-142.
  16. Arndt, Sven W., 1997. "Globalization and the open economy," The North American Journal of Economics and Finance, Elsevier, vol. 8(1), pages 71-79.
  17. Fuess, Jr., Scott M., 2006. "Working Hours in Japan: Who Is Time-Privileged?," IZA Discussion Papers 2195, Institute for the Study of Labor (IZA).
  18. Egger, Hartmut & Egger, Peter, 2005. "Labor market effects of outsourcing under industrial interdependence," International Review of Economics & Finance, Elsevier, vol. 14(3), pages 349-363.
  19. Berman, Eli & Bound, John & Griliches, Zvi, 1994. "Changes in the Demand for Skilled Labor within U.S. Manufacturing: Evidence from the Annual Survey of Manufactures," The Quarterly Journal of Economics, MIT Press, vol. 109(2), pages 367-97, May.
  20. Geishecker, Ingo & Gorg, Holger, 2005. "Do unskilled workers always lose from fragmentation?," The North American Journal of Economics and Finance, Elsevier, vol. 16(1), pages 81-92, March.
  21. Hartmut Egger & Peter Egger, 2000. "Outsourcing and skill-specific employment in a small economy: Austria and the fall of the Iron Curtain," Economics working papers 2000-24, Department of Economics, Johannes Kepler University Linz, Austria.
  22. Choi, E. Kwan & Harrigan, James, 2003. "Handbook of International Trade," Staff General Research Papers 11375, Iowa State University, Department of Economics.
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