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Offshoring and Employment in Canada: Some Basic Facts

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  • Johnson, Anick
  • Morissette, Rene

Abstract

In this study, we assemble a wide variety of data sets in an attempt to produce a set of stylized facts regarding offshoring and the evolution of Canadian employment in recent years. Our main finding is that, in almost all of the data sets used, there is, so far, little evidence of a correlation between offshoring, however defined, and the evolution of employment and layoff rates. While our analyses are fairly simple, they all suggest that if foreign outsourcing has had an impact on Canadian employment and worker displacement so far, this impact is likely to be modest and thus, unlikely to be detected either with industry-level or occupation-level data.

Suggested Citation

  • Johnson, Anick & Morissette, Rene, 2007. "Offshoring and Employment in Canada: Some Basic Facts," Analytical Studies Branch Research Paper Series 2007300e, Statistics Canada, Analytical Studies Branch.
    • Handle: RePEc:stc:stcp3e:2007300e
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    File URL: https://www150.statcan.gc.ca/n1/en/catalogue/11F0019M2007300
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    References listed on IDEAS

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    1. Robert C. Feenstra & Gordon H. Hanson, 1999. "The Impact of Outsourcing and High-Technology Capital on Wages: Estimates For the United States, 1979–1990," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 114(3), pages 907-940.
    2. J. Bradford Jensen & Lori G. Kletzer, 2005. "Tradable Services: Understanding the Scope and Impact of Services Outsourcing," Working Paper Series WP05-9, Peterson Institute for International Economics.
    3. Paul A. Samuelson, 2004. "Where Ricardo and Mill Rebut and Confirm Arguments of Mainstream Economists Supporting Globalization," Journal of Economic Perspectives, American Economic Association, vol. 18(3), pages 135-146, Summer.
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    5. Ashish Arora & Alfonso Gambardella, 2005. "The Globalization of the Software Industry: Perspectives and Opportunities for Developed and Developing Countries," NBER Chapters, in: Innovation Policy and the Economy, Volume 5, pages 1-32, National Bureau of Economic Research, Inc.
    6. Jagdish Bhagwati & Arvind Panagariya, 2004. "The Muddles over Outsourcing," Journal of Economic Perspectives, American Economic Association, vol. 18(4), pages 93-114, Fall.
    7. Alexander Hijzen & Holger Görg & Robert C. Hine, 2005. "International Outsourcing and the Skill Structure of Labour Demand in the United Kingdom," Economic Journal, Royal Economic Society, vol. 115(506), pages 860-878, October.
    8. Anick Johnson & Rene Morissette, 2005. "Are good jobs disappearing in Canada?," Economic Policy Review, Federal Reserve Bank of New York, issue Aug, pages 23-56.
    9. Mary Amiti & Shang-Jin Wei, 2005. "Fear of service outsourcing: is it justified? [‘Location of vertically linked industries: agglomeration versus comparative advantage’]," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 20(42), pages 308-347.
    10. Johnson, Anick & Morissette, Rene, 2005. "Are Good Jobs Disappearing in Canada?," Analytical Studies Branch Research Paper Series 2005239e, Statistics Canada, Analytical Studies Branch.
    11. Wei, Shang-Jin & Amiti, Mary, 2004. "Fear of Outsourcing: Is It Justified?," CEPR Discussion Papers 4719, C.E.P.R. Discussion Papers.
    12. Lael Brainard & Robert Litan, 2004. "Outsourcing, Offshoring - Service Offshoring: Bane or Boon and What to Do?," CESifo Forum, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 5(02), pages 3-7, October.
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    Cited by:

    1. Jooyoun Park, 2018. "The Cleansing Effect of Offshoring in an Analysis of Employment," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 44(2), pages 242-272, April.
    2. Monarch, Ryan & Park, Jooyoun & Sivadasan, Jagadeesh, 2013. "Gains from Offshoring? Evidence from U.S. Microdata," Working Papers 635, Research Seminar in International Economics, University of Michigan.
    3. Basu, Anwesha & Marjit, Sugata & Veeramani, C., 2024. "Growth gains from offshore outsourcing," Journal of Policy Modeling, Elsevier, vol. 46(1), pages 90-112.
    4. Baldwin, John R. Gu, Wulong, 2008. "Outsourcing and Offshoring in Canada," Economic Analysis (EA) Research Paper Series 2008055e, Statistics Canada, Analytical Studies Branch.
    5. Monarch, Ryan & Park, Jooyoun & Sivadasan, Jagadeesh, 2017. "Domestic gains from offshoring? Evidence from TAA-linked U.S. microdata," Journal of International Economics, Elsevier, vol. 105(C), pages 150-173.

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    Keywords

    Employment and unemployment; Globalization and the labour market; International trade; Labour; Service imports;
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