Globalization and Restructuring during Downturns: A Case Study of California

Ashok Deo Bardhan and David K. Howe

Growth and Change, 2001, vol. 32, issue 2, 217-235

Abstract: Restructuring through foreign outsourcing, whereby greater imports of manufactured inputs substitute for blue‐collar labor, is shown to intensify when industries experience declines in sales. The magnitude of this effect was four to seven times greater in California industries experiencing a 20 percent sales decline from 1987‐1992, relative to those industries whose sales dropped by 5 percent. Foreign outsourcing explains a quarter to two‐fifths of the rise in payroll inequality between blue and white collar workers in California and perhaps five to ten percent of the rise in the remainder of the U.S. Past work linked growing inequality with foreign outsourcing and restructuring with economic downturns. Here, foreign outsourcing is used as an example of a particular efficiency augmenting measure, which occurs predominantly, though not exclusively, in troubled industries.

Date: 2001
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://doi.org/10.1111/0017-4815.00157

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:bla:growch:v:32:y:2001:i:2:p:217-235

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0017-4815

Access Statistics for this article

Growth and Change is currently edited by Dan Rickman and Barney Warf

More articles in Growth and Change from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().