A model of wage and employment effects of service offshoring

Volume: 52, Issue: 1, Pages: 303 - 338
Published: May 1, 2015
Abstract
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...
Paper Details
Title
A model of wage and employment effects of service offshoring
Published Date
May 1, 2015
Volume
52
Issue
1
Pages
303 - 338
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