Offshoring Jobs? Multinationals and U.S. Manufacturing Employment

Ann Harrison and Margaret McMillan

The Review of Economics and Statistics, 2011, vol. 93, issue 3, 857-875

Abstract: Using firm-level data collected by the U.S. Bureau of Economic Analysis, we estimate the impact on U.S. manufacturing employment of changes in foreign affiliate wages. We show that the motive for offshoring and, consequently, the location of offshore activity, significantly affects the impact of offshoring on parent employment. In general, offshoring to low-wage countries substitutes for domestic employment. However, for firms that do significantly different tasks at home and abroad, foreign and domestic employment are complements. These offsetting effects may be combined to show that offshoring by U.S.-based multinationals is associated with a quantitatively small decline in manufacturing employment. © 2011 The President and Fellows of Harvard College and the Massachusetts Institute of Technology.

Date: 2011
References: Add references at CitEc
Citations: View citations in EconPapers (107)

Downloads: (external link)
http://www.mitpressjournals.org/doi/pdf/10.1162/REST_a_00085 link to full text (application/pdf)
Access to full text is restricted to subscribers.

Related works:
Chapter: OFFSHORING JOBS? MULTINATIONALS AND U.S. MANUFACTURING EMPLOYMENT (2022)
Working Paper: Offshoring Jobs? Multinationals and US Manufacturing Employment (2009)
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:tpr:restat:v:93:y:2011:i:3:p:857-875

Ordering information: This journal article can be ordered from
https://mitpressjour ... rnal/?issn=0034-6535

Access Statistics for this article

The Review of Economics and Statistics is currently edited by Pierre Azoulay, Olivier Coibion, Will Dobbie, Raymond Fisman, Benjamin R. Handel, Brian A. Jacob, Kareen Rozen, Xiaoxia Shi, Tavneet Suri and Yi Xu

More articles in The Review of Economics and Statistics from MIT Press
Bibliographic data for series maintained by The MIT Press ().