Data di Pubblicazione:
2008
Citazione:
Naghavi, A.. "Offshoring production: a simple model of wages, productivity, and growth" Working paper, RECENT WORKING PAPER SERIES, Dipartimento di Economia Marco Biagi – Università di Modena e Reggio Emilia, 2008.
Abstract:
We examine the relationship between o§shoring and the labour market in an occupational
choice model of trade and endogenous growth where workers are employed on the basis of their
individual skill levels. Trade liberalization leads to o§shoring and reduces employment in the
manufacturing sector. Displaced workers move into the traditional and innovation sectors according to their skill levels, shaping real wages and aggregate productivity in the manufacturing
sector. The paper aims to show how inter-sectoral labour market adjustments, highlighted by
skill heterogeneity, could be a possible explanation for the simultaneous rise in productivity and
reduction in real wages that have coincided with the sharp escalation of o§shoring activities in
the US manufacturing sector since 2004.
choice model of trade and endogenous growth where workers are employed on the basis of their
individual skill levels. Trade liberalization leads to o§shoring and reduces employment in the
manufacturing sector. Displaced workers move into the traditional and innovation sectors according to their skill levels, shaping real wages and aggregate productivity in the manufacturing
sector. The paper aims to show how inter-sectoral labour market adjustments, highlighted by
skill heterogeneity, could be a possible explanation for the simultaneous rise in productivity and
reduction in real wages that have coincided with the sharp escalation of o§shoring activities in
the US manufacturing sector since 2004.
Tipologia CRIS:
Working paper
Keywords:
offshoring, trade liberalization, real wages, growth, productivity, intersectoral labour reallocation, skill heterogeneity.
Elenco autori:
Naghavi, A.
Link alla scheda completa:
Pubblicato in: