MARC Record from Oregon Libraries

LEADER: 03060nam a2200385Ka 4500
001 153915970
003 OCoLC
005 20070822100553.0
007 cr bn|||||||||
008 070709s2007 maua b 000 0 eng d
035 $a(OCoLC)153915970
040 $aGZM$cGZM$dNTE
049 $aNTEA$aNTEF
090 $aHB1$b.W654 no.13149
100 1 $aMitra, Devashish.
245 10 $aOffshoring and unemployment /$cDevashish Mitra, Priya Ranjan.
260 $aCambridge, Mass. :$bNational Bureau of Economic Research,$cc2007.
300 $a41, [5] p. :$bill. ;$c22 cm.
490 1 $aNBER working paper series ;$vno. 13149.
500 $a"June 2007"
504 $aIncludes bibliographical references (p. 31-34).
520 $a"In this paper, in order to study the impact of offshoring on sectoral and economywide rates of unemployment, we construct a two sector general equilibrium model in which labor is mobile across the two sectors, and unemployment is caused by search frictions. We find that, contrary to general perception, wage increases and sectoral unemployment decreases due to offshoring. This result can be understood to arise from the productivity enhancing (cost reducing) effect of offshoring. If the search cost is identical in the two sectors, or even if the search cost is higher in the sector which experiences offshoring, the economywide rate of unemployment decreases. We also find multiple equilibrium outcomes in the extent of offshoring and therefore, in the unemployment rate. Furthermore, a firm can increase its domestic employment through offshoring. Also, such a firm's domestic employment can be higher than a firm that chooses to remain fully domestic. When we modify the model to disallow intersectoral labor mobility, the negative relative price effect on the sector in which firms offshore some of their activity becomes stronger. In such a case, it is possible for this effect to offset the positive productivity effect, and result in a rise in unemployment in that sector. In the other sector, offshoring has a much stronger unemployment reducing effect in the absence of intersectoral labor mobility than in the presence of it. Finally, allowing for an endogenous number of varieties provides an additional indirect channel, through which sectoral unemployment goes down due to the entry of new firms brought about by offshoring."--abstract.
530 $aAlso available in PDF from the NBER world wide web site (www.nber.org).
650 0 $aOffshore assembly industry.
650 0 $aUnemployment$xEconometric models.
650 0 $aWages$xEconometric models.
700 1 $aRanjan, Priya.
710 2 $aNational Bureau of Economic Research.
830 0 $aWorking paper series (National Bureau of Economic Research) ;$vworking paper no. 13149.
856 41 $zOnline access for everyone$uhttp://www.nber.org/papers/W13149.pdf
907 $a.b33920576$bmulti$c-
902 $a080111
998 $b2$c070822$dm$ea$f-$g0
945 $lwhs $aHB1$b.W654 no.13149
945 $lt $aHB1$b.W654 no.13149 (Electronic resource)