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Offshoring and Occupational Specificity of Human Capital

Moritz Ritter ()

No 1207, DETU Working Papers from Department of Economics, Temple University

Abstract: I document that workers in newly tradable service occupations possess more occupation-specific human capital and are more highly educated than workers in previously tradable occupations. Motivated by this observation, I develop a dynamic equilibrium model with labor market frictions and specific human capital to study the labor adjustment process after a trade shock. When calibrated to match the increase in U.S. trade between 1990 and 2010, the model suggests that (1) output increases immediately after a trade shock and converges quickly to the steady state; (2) labor market institutions play a larger role in the adjustment process than specific human capital; (3) the short run distributional effects are small if the labor market is flexible, even in the presence of specific human capital.

Keywords: Offshoring; Sectoral Labor Reallocation; Human Capital (search for similar items in EconPapers)
JEL-codes: E24 F16 J24 J62 (search for similar items in EconPapers)
Date: 2012-12
New Economics Papers: this item is included in nep-dge, nep-hrm, nep-int, nep-lab, nep-lma and nep-mac
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http://www.cla.temple.edu/RePEc/documents/DETU_12_07.pdf First Version, 2012 (application/pdf)

Related works:
Journal Article: Offshoring and occupational specificity of human capital (2014) Downloads
Working Paper: Offshoring and Occupational Specificity of Human Capital (2009) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:tem:wpaper:1207

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