Offshoring of Medium-skill Jobs, Polarization, and Productivity Effect: Implications for Wages and Low-skill Unemployment

Arbeitspapier

We examine the effects of endogenous offshoring on cost-efficiency, wages and unemployment in a taskassignment model with skill heterogeneity. Exact conditions for the following insights are derived. The distributional effect of offshoring (high-) low-skill-intensive tasks is similar to (unskilled-) skill-biased technology changes, while offshoring medium-skill-intensive tasks induces wage polarization. Offshoring improves cost-efficiency through international task reallocation and puts a downward pressure on all wages through domestic skill-task reallocation. If elasticities of task substitution are low (high), the downward pressure on wages in neighboring skill segments is low (high) with a net effect of higher (lower) wages and employment.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: UNU-MERIT Working Papers ; No. 2015-004

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Trade and Labor Market Interactions ; Economic Impacts of Globalization: Labor ; Labor Force and Employment, Size, and Structure ; Human Capital; Skills; Occupational Choice; Labor Productivity ; Unemployment: Models, Duration, Incidence, and Job Search
• Thema: Task Assignment ; Offshoring ; Skills ; Cost-efficiency Effect ; Equilibrium Unemployment

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Vallizadeh, Ehsan ; Muysken, Joan ; Ziesemer, Thomas
• Ereignis: Veröffentlichung
• (wer): Maastricht Economic and social Research institute on Innovation and Technology (UNU‐MERIT)
• (wo): Maastricht
• (wann): 2015-02-04

Weitere Informationen

• Handle: http://hdl.handle.net/10419/107080
• Letzte Aktualisierung: 10.03.2025, 11:43 MEZ