Trade in tasks and the organization of firms

Dalia Marin, Jan Schymik and Alexander Tarasov

European Economic Review, 2018, vol. 107, issue C, 99-132

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)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0014292118300862
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Trade in Tasks and the Organization of Firms (2019)
Working Paper: 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)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:eecrev:v:107:y:2018:i:c:p:99-132

DOI: 10.1016/j.euroecorev.2018.06.001

Access Statistics for this article

European Economic Review is currently edited by T.S. Eicher, A. Imrohoroglu, E. Leeper, J. Oechssler and M. Pesendorfer

More articles in European Economic Review from Elsevier
Bibliographic data for series maintained by Catherine Liu ().