Offshoring and Directed Technical Change

Acemoğlu, Daron; Gancia, Gino; Zilibotti, Fabrizio

doi:10.2139/ssrn.2153287

Cited by 30 publications

(41 citation statements)

References 62 publications

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“…But if the other two forces (the labour supply and relative price effects) outweigh the efficiency effect, then wages are likely to fall. Acemoglu et al (2015) depart from GRH and endogenise the role of technical change in an analysis of the relative wage effects for skilled and unskilled workers in different economies. This is a useful framework in which to study the wage effects of fragmentation in countries that differ, as in our empirical analysis, in level of development and industrialisation (which Acemoglu et al label BEast^and BWest^).…”

Section: Production Fragmentation Value Added Trade Gvcs and Domestmentioning

confidence: 99%

Global Value Chains and Wages: Multi-Country Evidence from Linked Worker-Industry Data

Parteka

Wolszczak‐Derlacz

2018

Open Econ Rev

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This paper uses a multi-country microeconomic setting to contribute to the literature on the nexus between production fragmentation and wages. Exploiting a rich dataset on over 110,000 workers from nine Eastern and Western European countries and the United States, we study the relationship between individual workers' wages and industry ties into global value chains (GVCs). We find an inverse (but weak) relationship between the degree of industries' involvement in GVCs and wages. Workers employed in routine occupations clearly earn less, but it is difficult to attribute it to the role played by the involvement of their countries and industries in global value chains.

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Section: Production Fragmentation Value Added Trade Gvcs and Domestmentioning

confidence: 99%

Global Value Chains and Wages: Multi-Country Evidence from Linked Worker-Industry Data

Parteka

Wolszczak‐Derlacz

2018

Open Econ Rev

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“…Acemoglu et al. ), our data has the great advantage that we are able to observe the introduction of new technologies and organizational changes at the workplace. This allows us to discriminate between offshoring and technological change when explaining the variation in individual training decisions and eliminates possible concerns about technological change being a potential source of an omitted variable bias.…”

Section: The Impact Of Offshoring On On‐the‐job Trainingmentioning

confidence: 99%

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

Hogrefe

Wrona

2015

Canadian J of Economics

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Jens Wrona * * * Terms of use: Documents in University of TübingenNovember 13, 2013 AbstractWe 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-thejob training, complementing the existing literature, which mainly focuses on the retraining of workers after a direct job displacement through offshoring. To establish a link between offshoring and on-the-job training, we introduce an individual skill upgrading margin into the small-open-economy version of the Grossman and Rossi-Hansberg (2008) model of offshoring. In our model offshoring, by scaling up workers' wages, creates previously unexploited skill upgrading possibilities and, thus, leads to more on-the-job training. Using data from German manufacturing, we find strong empirical support for the prediction that increased offshoring is positively related to individual on-the-job training participation. JEL-Classification: F10, F16, F61

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“…Households are endowed with ability level

μ \in [0, 1]

and supply one of two types of labour: unskilled, L , if

μ < \overset{μ}{true}

, and skilled, H , if

μ > \overset{μ}{true}

. Following, among others, Acemoglu and Zilibotti () and Acemoglu, Gancia, and Zilibotti (), the amounts of both types of labour, L and H , are fixed, and labour is immobile between the skilled‐abundant innovator country, indexed by I , and the unskilled‐abundant imitator country, indexed by F ; that is,

\frac{H^{I}}{L^{I}} > \frac{H^{F}}{L^{F}}

.…”

Section: The Modelmentioning

confidence: 99%

Costly investment and complementarities in an international trade model with directed technological change

2017

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We investigate the impacts on the skill premium and on economic growth in an innovator-imitator general equilibrium growth model assuming: (a) directed technological change; (b) international trade of intermediate goods; (c) internal costly investment in both physical capital and R&D; and (d) complementarities between intermediate goods in aggregate production. With trade of intermediate goods, the complementarities degree and investment costs influence the economic growth of both countries, but do not affect the countries' skill premia, which are directed by technological knowledge. Additionally, in agreement with related empirical literature, openness to trade of intermediate goods leads to a higher equilibrium skill premium in both countries, whereas its impact on the common growth rate can vary in sign. | IN TRO DUCT IO NThis paper develops a two-country skill-biased technological change growth model to investigate the impact of international trade of intermediate goods on the skill premium and the economic growth rate in developed and developing countries. We emphasize the role of the directed technological change mechanism in explaining the link between international trade, skill premium and economic growth, in the presence of internal costly investment in physical capital and R&D and complementarities between intermediate goods in production.Our main goal is to provide one theoretical accommodation for three simultaneous economic trends observed since the early 1980s in developed and developing countries, namely: (a) increasing technological-knowledge levels (Acemoglu, 2002(Acemoglu, , 2003Barro & Sala-i-Martin, 2004) Machin, 1998), especially in periods of trade openness and liberalization. Coe and Helpman (1995), Feenstra (1998) and Krugman (2000) are examples of specific related literature we wish to contribute to. Coe and Helpman (1995) reveal that developed countries account for most of the innovations in the world and that the benefits of innovative R&D are much more evenly distributed in the world than expenditures on innovative R&D, suggesting that technological knowledge is diffused internationally. Feenstra (1998) and Krugman (2000) stress the spectacular integration of the global economy through trade and also analyse the implications of globalization for wages. Experiences of simultaneous economic liberalization (e.g., Dicken, 2015;Gancia & Bonfiglioli, 2008) and growing wage premia of skilled over unskilled workers, have in fact been observed since the 1980s in developed and developing countries (e.g., Acemoglu, 2003;Acemoglu & Autor, 2011;Avalos & Savvides, 2006;Bound & Johnson, 1992;Brainerd, 1998;Goldin & Katz, 2010;Juhn, Murphy, & Pierce, 1993; Katz & Murphy, 1992;Machin & Van Reenen, 1998;Nickell & Bell, 1996;Zhu & Trefler, 2005). In the particular case of developing countries, Arbache, Dickerson, and Green (2004) survey increases in wage premium following liberalization in: Brazil (Green, Dickerson, & Arbache, 2001); Mexico (Hanson & Harrison, 1999;Robertson, 2004); Chile (...

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Offshoring and Directed Technical Change

Cited by 30 publications

References 62 publications

Global Value Chains and Wages: Multi-Country Evidence from Linked Worker-Industry Data

Global Value Chains and Wages: Multi-Country Evidence from Linked Worker-Industry Data

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

Costly investment and complementarities in an international trade model with directed technological change

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