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Offshoring Tasks, yet Creating Jobs? * (2010)
| Citations: | 6 - 0 self |
BibTeX
@MISC{Kohler10offshoringtasks,,
author = {Wilhelm Kohler and Jens Wrona},
title = {Offshoring Tasks, yet Creating Jobs? *},
year = {2010}
}
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Abstract
We show that in a Ricardo-Viner-type trade model with unemployment due to search and matching the productivity effect of offshoring emphasized by Grossman & Rossi-Hansberg (2008) emerges as a vehicle of job creation. Improvements in the technology of offshoring causes job losses at the extensive margin where ever more tasks are performed abroad, but it also causes job creation from cost-savings associated with enhanced trade in tasks. We identify conditions under which job creation dominates job destruction. We also show that employment may follow a non-monotonic pattern of adjustment to successive improvements in the technology of offshoring. We thank the participants of the Brown Bag Seminar at Tübingen University as well as the seminar participants of the THE X-mas Workshop at Hohenheim University, and the 12th International Economic Relations Workshop at Göttingen University. We thank especially Udo Kreickemeier and Hartmut Egger for helpful comments and discussion. We have also benefited from a stimulating discussion by Hans-Jörg Schmerer at the THE X-mas Workshop. This is a preliminary version please
Keyphrases
job creation x-mas workshop job destruction brown bag seminar udo kreickemeier preliminary version please successive improvement hans-j rg schmerer seminar participant ricardo-viner-type trade model helpful comment non-monotonic pattern ttingen university bingen university enhanced trade hartmut egger international economic relation workshop hohenheim university extensive margin productivity effect cause job loss grossman rossi-hansberg stimulating discussion
