Offshoring and jobs: The myriad channels of influence

Groizard, José Luis; Ranjan, Priya; Rodriguez‐Lopez, Antonio

doi:10.1016/j.euroecorev.2014.10.004

Cited by 26 publications

(28 citation statements)

References 38 publications

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“…To ensure the gains from the improvement in production e¢ ciency are widely distributed, redistribution will be required. 17 The result in proposition 5 is similar to the Copeland (1989) result that a tari¤ is optimal if the distorted sector is import-competing. In his model the division of labor between those who need to be monitored (type 1 jobs) and those who do not (type 2 jobs) is distorted.…”

supporting

confidence: 69%

“…It immediately follows that w = z and hence, (18) corresponds to (17), which gives the following result.…”

Section: Case Of Risk Neutral Workersmentioning

confidence: 77%

“…Can such a …ring subsidy restore e¢ ciency? The e¢ cient 1 9 To see how ft > 0 lowers c below the e¢ cient level, note that p > w z implies that z > w p and hence z > w p ft: Following the same reasoning as in the proof of lemma 2, one can verify that the c that solves (26) is lower than the c that solves (17). level of …ring subsidy is given by s = f t = p (w z) : That is, a …ring subsidy can restore e¢ ciency in the model.…”

Section: Firing Subsidymentioning

confidence: 97%

“…It is shown in the appendix that in this case the equilibrium wage and severance payments are such that the workers are fully insured: w = f w + z: A consequence is that the equilibrium unemployment is given by (17). That is, the equilibrium is production-e¢ cient.…”

Section: Axmentioning

confidence: 99%

“…Therefore, for B = 0; the above becomes (17). For B > 0 the decentralized c is production ine¢ cient.…”

mentioning

confidence: 99%

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Globalization and risk averse workers: The roles of labor market and trade policies

Ranjan

2016

Journal of International Economics

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This paper studies the implications of globalization for aggregate output and welfare when risk averse workers face the risk of unemployment. The impact of globalization on the welfare of workers and aggregate output depends on the degree of substitutability between domestic workers and imported inputs. When the degree of substitutability is high (low), then globalization reduces (increases) wages and increases (reduces) unemployment. Irrespective of the substitutability, free trade doesn't maximize the aggregate output. A small tari¤ (import subsidy) increases aggregate output when the substitutability is low (high), however, it can exacerbate the distributional con ‡ict. Domestic labor market policies such as unemployment bene…ts and severance payments can protect workers against labor income risk but the …ring restrictions do not. Free trade is optimal when labor market policies provide insurance against unemployment.

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supporting

confidence: 69%

“…It immediately follows that w = z and hence, (18) corresponds to (17), which gives the following result.…”

Section: Case Of Risk Neutral Workersmentioning

confidence: 77%

Section: Firing Subsidymentioning

confidence: 97%

Section: Axmentioning

confidence: 99%

“…Therefore, for B = 0; the above becomes (17). For B > 0 the decentralized c is production ine¢ cient.…”

mentioning

confidence: 99%

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Globalization and risk averse workers: The roles of labor market and trade policies

Ranjan

2016

Journal of International Economics

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International Effects of Stock Market Dispersion

2020

Southern Economic Journal

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We study the extent to which stock market dispersion is related to unemployment and output growth for 16 countries over 20 years. Using panel vector‐auto‐regressions and panel dynamic regressions, we find increases in stock market dispersion across industries to induce future increases in unemployment and future decreases in industrial production (IP) growth. Moreover, the responses of unemployment and IP growth following a positive shock to stock market dispersion are persistent and are robust to various controls, sample periods, and estimation methods. Our article provides cross‐country evidence in support of the hypothesis that shifts in demand across industries negatively affect employment.

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All-Around Trade Liberalization and Firm-Level Employment: Theory and Evidence from China

Rodrigue-Lopez,

2023

Contributions to Economics

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Chinese firms faced an all-around trade liberalization process during the early 2000s: lower barriers from other countries on Chinese goods, and lower Chinese barriers on other countries' goods and inputs. Using novel firm-level tariff data for trading Chinese manufacturing firms, this paper disentangles the effects of each type of trade liberalization on Chinese firm-level employment. For each firm type, reductions in Chinese and foreign final-good tariffs are associated with job destruction in low-productivity firms and job creation in high-productivity firms. In contrast, the net effect of reductions in Chinese input tariffs is limited to job destruction in lowproductivity ordinary exporters.

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Offshoring and jobs: The myriad channels of influence

Cited by 26 publications

References 38 publications

Globalization and risk averse workers: The roles of labor market and trade policies

Globalization and risk averse workers: The roles of labor market and trade policies

International Effects of Stock Market Dispersion

All-Around Trade Liberalization and Firm-Level Employment: Theory and Evidence from China

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