Tesco
Gains from Offshoring?
Report

Gains from Offshoring?

Evidence from U.S. Microdata

Ryan Monarch, Jooyoun Park and Jagadeesh Sivadasan
Federal Reserve Board, 2014
Get the Report

Read or listen offline

автоматическое преобразование текста в аудио
  • 0.5×
  • 0.75×
  • 1×
  • 1.25×
  • 1.5×
  • 1.75×
1×
автоматическое преобразование текста в аудио

Editorial Rating

7

Qualities

  • Analytical
  • Scientific
  • Eye Opening

Recommendation

The effects of international trade and globalization on employment, productivity, output and wages in the manufacturing sector have long been fodder for the media, labor unions, government officials and economists. In the United States, growing income inequality is gaining more and more attention, as are the businesses that relocate their operations overseas. Using new analytical tools, economists Ryan Monarch, Jooyoun Park and Jagadeesh Sivadasan offer fresh insights and draw significant conclusions in this scholarly paper about the impacts of offshoring on the US labor force. The report itself, replete with econometric and statistical analyses, may prove a taxing read for the uninitiated, but getAbstract believes that business strategists and policy makers will find its results thought provoking.

Take-Aways

  • Between 1990 and 2012, the United States lost some five million manufacturing jobs due, in some measure, to growing international trade and the offshoring of production.
  • Vertically integrated offshoring – moving activities linked to a firm’s domestic operations to a foreign location – can have positive impacts on overall profits and output. If companies share those gains with workers, wages rise.
  • Jobs in outsourced horizontal activities – those unrelated to a firm’s domestic business – can replace employment at home.

About the Authors

Ryan Monarch is an economist with the Board of Governors of the Federal Reserve System. Jooyoun Park is an assistant professor of economics at Kent State University. Jagadeesh Sivadasan is an associate professor of business economics at the University of Michigan.

Comment on this summary or Начать обсуждение