Arbeitspapier

A model of wage and employment effects of service offshoring

This article shows that a skill-abundant country with a relatively high productivity has larger incentives to offshore unskilled than skilled intensive tasks (services), even though no assumption on the correlation between the degree of tradability and skill-intensity of the tasks is made. Assuming putty-clay technology that locks labor into tasks in the short run, it is shown that service offshoring yields wage and employment effects in the long run. These effects switch from negative to positive as the degree of tradability declines, being the switch for a large degree of tradability in the case of the skilled intensive tasks. The results are consistent with an emerging empirical literature that studies the effects of service offshoring on wages and employment.

Language
Englisch

Bibliographic citation
Series: Working Papers ; No. 2015-10

Classification
Wirtschaft
Human Capital; Skills; Occupational Choice; Labor Productivity
Contracting Out; Joint Ventures; Technology Licensing
Subject
Service offshoring
Trade in Tasks
Skill-intensity

Event
Geistige Schöpfung
(who)
Tobal, Martín
Event
Veröffentlichung
(who)
Banco de México
(where)
Ciudad de México
(when)
2015

Handle
Last update
10.03.2025, 11:42 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Tobal, Martín
  • Banco de México

Time of origin

  • 2015

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