Managerial versus Production Wages: Offshoring, Country Size, and Endowments

Sebastian Benz and Wilhelm Kohler

Canadian Journal of Economics, 2014, vol. 47, issue 1, 250-271

Abstract: We explore the role of trade in differentiated final goods as well as offshoring of tasks for inequality both within and between countries, emphasizing the distinction between managerial and production labour. We extend Grossman and RossiHansberg (2012), where task trade is driven by external economies of scale, by considering asymmetric endowments. Identifying possible equilibrium patterns of task trade, we find little scope for twoway trade if endowments are asymmetric. Our numerical simulations identify nonmonotonicities between the level of offshoring and measures of withincountry as well as betweencountry inequality.

JEL-codes: F1 F2 (search for similar items in EconPapers)
Date: 2014
References: Add references at CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1111/caje.12073 (text/html)
access restricted to subscribers

Related works:
Journal Article: Managerial versus Production Wages: Offshoring, Country Size, and Endowments (2014)
Working Paper: Managerial versus production wages: Offshoring, country size and endowments (2011)
Working Paper: Managerial versus Production Wages: Offshoring, Country Size and Endowments (2010)
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:cje:issued:v:47:y:2014:i:1:p:250-271

Ordering information: This journal article can be ordered from
https://www.economic ... ionen/membership.php

Access Statistics for this article

Canadian Journal of Economics is currently edited by Zhiqi Chen

More articles in Canadian Journal of Economics from Canadian Economics Association Canadian Economics Association Prof. Werrner Antweiler, Treasurer UBC Sauder School of Business 2053 Main Mall Vancouver, BC, V6T 1Z2. Contact information at EDIRC.
Bibliographic data for series maintained by Prof. Werner Antweiler ().