Trade, tasks and training: The effect of offshoring on individual skill upgrading

Jan Hogrefe () and Jens Wrona

Canadian Journal of Economics, 2015, vol. 48, issue 4, 1537-1560

Abstract: We offer a theoretical explanation and empirical evidence for a positive link between increased offshoring and individual skill upgrading. Skill upgrading takes the form of on-the-job training, complementing the existing literature, which mainly focuses on the retraining of displaced workers. To establish a link between offshoring and on-the-job training, we introduce an individual skill upgrading margin into the Grossman and Rossi-Hansberg ( ) model of offshoring. By scaling up worker's wages, offshoring creates previously unexploited skill upgrading possibilities, which lead to more training. Using data from German manufacturing, we establish a causal link between industry-level offshoring growth and increased individual skill upgrading.

JEL-codes: F14 (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (8)

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Related works:
Working Paper: Trade, tasks, and training: The effect of offshoring on individual skill upgrading (2014)
Working Paper: Trade, tasks, and training: The effect of offshoring on individual skill upgrading (2013)
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