Arbeitspapier

Offshoring tasks, yet creating jobs?

The policy debate views offshoring as job destruction. Theoretical models of offshoring mostly assume full employment. We develop a model of task trade that allows for equilibrium unemployment. In this model, there are two margins of adjustment. At the extensive margin, moving tasks offshore destroys jobs. At the intensive margin, due to higher productivity of labor in domestic tasks it creates jobs. Exploring these conditions in detail, we identify the potential of non-monotonic adjustment: Early stages of offshoring always lead to higher unemployment, while later stages may entail net job creation. We highlight this potential through numerical simulations.

Sprache
Englisch

Erschienen in
Series: University of Tübingen Working Papers in Economics and Finance ; No. 12

Klassifikation
Wirtschaft
Trade and Labor Market Interactions
Neoclassical Models of Trade
Thema
Offshoring
Trade in Tasks
Unemployment
Non-monotonicity
Offshoring
Globalisierung
Produktivität
Beschäftigungseffekt
Komparativer Kostenvorteil
Arbeitslosigkeit
Matching
Theorie

Ereignis
Geistige Schöpfung
(wer)
Kohler, Wilhelm
Wrona, Jens
Ereignis
Veröffentlichung
(wer)
University of Tübingen, Faculty of Economics and Social Sciences
(wo)
Tübingen
(wann)
2011

Handle
URN
urn:nbn:de:bsz:21-opus-56836
Letzte Aktualisierung
10.03.2025, 11:42 MEZ

Datenpartner

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Objekttyp

  • Arbeitspapier

Beteiligte

  • Kohler, Wilhelm
  • Wrona, Jens
  • University of Tübingen, Faculty of Economics and Social Sciences

Entstanden

  • 2011

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