Does Services Offshoring Contribute to Jobs Polarization?

Hildegunn Nordås

No 332077, Conference papers from Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project

Abstract: This paper explores the relation between services offshoring through FDI or cross-border trade and the skills composition of labour demand, focusing in particular on its possible contribution to polarization of the labour market. It is found that outward investment does not shift jobs abroad. Linking economic stimulus packages to local production are therefore unlikely to protect local jobs. It is found that services trade does contribute to structural changes in employment, in particular a shift from low-skilled to highskilled employment. However, contrary to what has been feared, services offshoring does not seem to hurt medium-skilled workers. Finally, reducing behind the border regulatory barriers is the most effective policy measure that would stimulate FDI and employment while improving labour productivity, although also this measure reduce demand for low-skilled labour.

Keywords: International Relations/Trade; Labor and Human Capital (search for similar items in EconPapers)
Pages: 23
Date: 2011
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://ageconsearch.umn.edu/record/332077/files/5504.pdf (application/pdf)

Related works:
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:ags:pugtwp:332077

Access Statistics for this paper

More papers in Conference papers from Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().