Offshoring and Labor Markets

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Offshoring and Labor Markets. / Hummels, David; Munch, Jakob Roland; Xiang, Chong.

In: Journal of Economic Literature, Vol. 56, No. 3, 09.2018, p. 981-1028.

Research output: Contribution to journal › Journal article › Research › peer-review

Harvard

Hummels, D, Munch, JR & Xiang, C 2018, 'Offshoring and Labor Markets', Journal of Economic Literature, vol. 56, no. 3, pp. 981-1028. https://doi.org/10.1257/jel.20161150

APA

Hummels, D., Munch, J. R., & Xiang, C. (2018). Offshoring and Labor Markets. Journal of Economic Literature, 56(3), 981-1028. https://doi.org/10.1257/jel.20161150

Vancouver

Hummels D, Munch JR, Xiang C. Offshoring and Labor Markets. Journal of Economic Literature. 2018 Sep;56(3):981-1028. https://doi.org/10.1257/jel.20161150

Author

Hummels, David ; Munch, Jakob Roland ; Xiang, Chong. / Offshoring and Labor Markets. In: Journal of Economic Literature. 2018 ; Vol. 56, No. 3. pp. 981-1028.

Bibtex

@article{46550768f7054c9c9de7b406c3d0b187,
title = "Offshoring and Labor Markets",
abstract = "In this paper we survey the recent empirical literature on the effects of offshoring on wage, employment and displacement. We start with an overview of the measurement of offshoring, organizing our discussion around the three key elements of offshoring: that it involves intermediate inputs for production (vs. final goods for consumption); that it involves imported inputs (vs. domestically produced ones); and that the inputs involved could have been produced internally within the same firm. We then briefly discuss the theories of offshoring, and survey the literature that examines the wage effects of offshoring: the wave of studies using industry-level data; the wave using firm-level data; the wave using worker-level data; and the wave using matched worker-firm data. For each wave we highlight the identification strategies used, critically assess its strength and weakness, discuss its connections with theory, and draw out potential policy implications of its findings. Finally we survey the literature that examines how offshoring affects employment and displacement. We highlight the recent development of a novel cohort-based approach that is specifically designed to address selection with displacement, and capable of identifying the overall effects of offshoring, including wage, displacement, and all other types of transition.",
author = "David Hummels and Munch, {Jakob Roland} and Chong Xiang",
year = "2018",
month = sep,
doi = "10.1257/jel.20161150",
language = "English",
volume = "56",
pages = "981--1028",
journal = "Journal of Economic Literature",
issn = "0022-0515",
publisher = "American Economic Association",
number = "3",

}

RIS

TY - JOUR

T1 - Offshoring and Labor Markets

AU - Hummels, David

AU - Munch, Jakob Roland

AU - Xiang, Chong

PY - 2018/9

Y1 - 2018/9

N2 - In this paper we survey the recent empirical literature on the effects of offshoring on wage, employment and displacement. We start with an overview of the measurement of offshoring, organizing our discussion around the three key elements of offshoring: that it involves intermediate inputs for production (vs. final goods for consumption); that it involves imported inputs (vs. domestically produced ones); and that the inputs involved could have been produced internally within the same firm. We then briefly discuss the theories of offshoring, and survey the literature that examines the wage effects of offshoring: the wave of studies using industry-level data; the wave using firm-level data; the wave using worker-level data; and the wave using matched worker-firm data. For each wave we highlight the identification strategies used, critically assess its strength and weakness, discuss its connections with theory, and draw out potential policy implications of its findings. Finally we survey the literature that examines how offshoring affects employment and displacement. We highlight the recent development of a novel cohort-based approach that is specifically designed to address selection with displacement, and capable of identifying the overall effects of offshoring, including wage, displacement, and all other types of transition.

AB - In this paper we survey the recent empirical literature on the effects of offshoring on wage, employment and displacement. We start with an overview of the measurement of offshoring, organizing our discussion around the three key elements of offshoring: that it involves intermediate inputs for production (vs. final goods for consumption); that it involves imported inputs (vs. domestically produced ones); and that the inputs involved could have been produced internally within the same firm. We then briefly discuss the theories of offshoring, and survey the literature that examines the wage effects of offshoring: the wave of studies using industry-level data; the wave using firm-level data; the wave using worker-level data; and the wave using matched worker-firm data. For each wave we highlight the identification strategies used, critically assess its strength and weakness, discuss its connections with theory, and draw out potential policy implications of its findings. Finally we survey the literature that examines how offshoring affects employment and displacement. We highlight the recent development of a novel cohort-based approach that is specifically designed to address selection with displacement, and capable of identifying the overall effects of offshoring, including wage, displacement, and all other types of transition.

U2 - 10.1257/jel.20161150

DO - 10.1257/jel.20161150

M3 - Journal article

VL - 56

SP - 981

EP - 1028

JO - Journal of Economic Literature

JF - Journal of Economic Literature

SN - 0022-0515

IS - 3

ER -

ID: 214127022