Are U.S. White-Collar Really at Risk of Service Offshoring?

Rosario Crino ()

No 183, KITeS Working Papers from KITeS, Centre for Knowledge, Internationalization and Technology Studies, Universita' Bocconi, Milano, Italy

Abstract: This paper deals with recent concerns about potentially negative effects of service offshoring on U.S. white-collar workers. At this purpose, the paper uses highly disaggregated occupational data and develops a Flexible and Separable Translog model in which service offshoring is allowed to affect labor demand for both minor white-collar occupations and major white-collar groups. The model is estimated through Quasi-Maximum Likelihood to account for the presence of corner solutions. Results suggest that concerns about service offshoring are ill-founded: service offshoring stimulates labor demand for the white-collar and changes its skill distribution in favor of high-skilled occupations.

Keywords: Service Offshoring; White-Collar Workers; Labor Demand; Censored Demand System Estimation. (search for similar items in EconPapers)
JEL-codes: C34 F16 J23 (search for similar items in EconPapers)
Pages: 56 pages
Date: 2006-10, Revised 2006-10
New Economics Papers: this item is included in nep-bec
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