Trade in Tasks and the Organization of Firms

Dalia Marin, Jan Schymik and Alexander Tarasov

CRC TR 224 Discussion Paper Series from University of Bonn and University of Mannheim, Germany

Abstract: In this paper, we incorporate trade in tasks into Marin and Verdier (2012) to examine how offshoring affects the way firms organize. We show that offshoring of production tasks and of managerial tasks can lead to more decentralized management and to larger executive wages in open economies. We study the predictions of the model with original firm level data and find that offshoring firms are 18% more decentralized than non-offshoring firms. We also find that offshoring of managers increases the level of decentralized management in open industries, but reduces the level of decentralized management in sufficiently closed industries.

Keywords: international trade with endogenous organizations; the rise of human capital; theory of the firm; multinational firms; CEO pay (search for similar items in EconPapers)
JEL-codes: D23 F12 F14 L22 (search for similar items in EconPapers)
Pages: 51
Date: 2018-09
New Economics Papers: this item is included in nep-int
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Citations: View citations in EconPapers (4)

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Related works:
Working Paper: Trade in Tasks and the Organization of Firms (2019)
Journal Article: Trade in tasks and the organization of firms (2018)
Working Paper: Trade in tasks and the organization of firms (2018)
Working Paper: Trade in Tasks and the Organization of Firms (2015)
Working Paper: Trade in Tasks and the Organization of Firms (2014)
Working Paper: Trade in Tasks and the Organization of Firms (2014)
Working Paper: Trade in Tasks and the Organization of Firms (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:bon:boncrc:crctr224_2018_035

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