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Winners and losers from globalisation: offshoring benefits skilled workers and hurts the less skilled

Juan Carluccio (), Alejandro Cunat (), Harald Fadinger and Christian Fons-Rosen ()

Rue de la Banque, 2017, issue 51

Abstract: This Rue de la Banque, based on the exploitation of detailed data for the French manufacturing industry, argues that offshoring to low-wage countries was a strong determinant of the labour-market outcomes of low-skilled workers in France during the period 1995-2007. The results support the widespread view that international trade generates productivity gains, notably from having access to cheaper inputs, but that these gains are not evenly distributed across the different economic players. Making the most out of globalisation therefore requires implementing effective policies, notably in terms of vocational training in order to accompany the transition to higher skilled jobs.

Date: 2017
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