MARC Record from Library of Congress

LEADER: 03130cam a22003017a 4500
001 2006619113
003 DLC
005 20100908111936.0
007 cr |||||||||||
008 060726s2006 mau sb 000 0 eng
010 $a 2006619113
040 $aDLC$cDLC$dDLC
050 00 $aHB1
100 1 $aHarrison, Ann E.
245 10 $aOutsourcing jobs?$h[electronic resource]$bmultinationals and US employment /$cAnn E. Harrison, Margaret S. McMillan.
260 $aCambridge, MA :$bNational Bureau of Economic Research,$cc2006.
490 1 $aNBER working paper series ;$vworking paper 12372
538 $aSystem requirements: Adobe Acrobat Reader.
538 $aMode of access: World Wide Web.
500 $aTitle from PDF file as viewed on 7/26/2006.
530 $aAlso available in print.
504 $aIncludes bibliographical references.
520 3 $a"Critics of globalization claim that firms are being driven by the prospects of cheaper labor to shift employment abroad. Yet the evidence, beyond anecdotes, is slim. This paper focuses on the labor market decisions of US multinationals at home and abroad for the years 1977 to 1999. Using firm level data collected by the US Bureau of Economic Analysis (BEA), we separately estimate the impact on US manufacturing employment of affiliate activity abroad, imports and exports within multinational firms, and technological change. We begin by reporting correlations between US multinational employment at home and abroad. Evidence based on the operations of US multinationals suggests that the sign of the correlation depends upon the crucial distinction between affiliates in high-income and low-income countries. US employment and employment in low-income (high-income) countries are substitutes (complements). The complementarity is driven by an overall contraction in manufacturing employment both in the US and in affiliates based in high-income countries. We then develop an empirical framework which allows the firm to determine employment at home and abroad simultaneously. Using a variety of different theoretical approaches to estimating labor demand and a range of econometric techniques, we find that employment in low income countries substitutes for employment at home. Employment in high income affiliates, however, is generally complementary with US employment. Second, US capital investments in both high and low income affiliates are associated with lower employment in the United States. Finally, our results show that other factors have made important contributions to falling manufacturing employment in the United States, including technological change and import competition. Taken together, our results suggest that concerns over the impact of globalization on US jobs are grounded in reality"--National Bureau of Economic Research web site.
650 0 $aManufactures$xContracting out.
700 1 $aMcMillan, Margaret Stokes.
710 2 $aNational Bureau of Economic Research.
830 0 $aWorking paper series (National Bureau of Economic Research : Online) ;$vworking paper no. 12372.
856 40 $uhttp://papers.nber.org/papers/w12372