Globalization and jobless recoveries

Andrea Waddle

Journal of Macroeconomics, 2019, vol. 62, issue C

Abstract: Slow rebounds in employment have become a salient feature of recoveries from recessions over the past few decades. During this time, U.S. production has become increasingly globalized. In this paper, I provide evidence that offshoring contributes to slow recoveries in labor markets. Using data from the Current Population Survey, I show that employment in offshorable occupations mimics employment in routine occupations, recovering more slowly than other types of occupations. Additionally, I use data from the Bureau of Economic Analysis on activities of multinationals to show that offshoring contributes directly to this phenomenon. I then provide a theoretical framework that rationalizes these observations in the context of a modified growth model.

Keywords: Jobless recoveries; Globalization; Offshoring (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jmacro:v:62:y:2019:i:c:s0164070418305366

DOI: 10.1016/j.jmacro.2019.103138

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