THE LABOR MARKET EFFECTS OF OFFSHORING BY US MULTINATIONAL FIRMS

• 成果类型: Article
• 署名作者: Kovak, Brian K.; Oldenski, Lindsay; Sly, Nicholas
• 署名单位: National Bureau of Economic Research; Carnegie Mellon University; IZA Institute Labor Economics; Georgetown University; Federal Reserve System - USA; Federal Reserve Bank - Kansas City; Leibniz Association; Ifo Institut
• 刊物名称: REVIEW OF ECONOMICS AND STATISTICS
• ISSN/ISSBN: 0034-6535
• DOI: 10.1162/rest_a_00878
• 发表日期: 2021-05
• 页码: 381-396
• 关键词: FOREIGN DIRECT-INVESTMENT; tax treaties; margins; CHINA

摘要

We use firm-level data on U.S. multinationals to show how off-shoring affects domestic employment within and across firms. We introduce a new instrument for offshoring, bilateral tax treaties, which reduce the cost of offshore activities. We find substantial heterogeneity in effects. A 10% increase in affiliate employment drives a 1.3% increase in employment at the U.S. parent firm, with smaller effects at the industry and regional levels. In contrast, offshoring by vertical multinationals drives declining employment among nonmultinationals in the same industry, and firms opening new affiliates exhibit smaller domestic employment growth than those expanding existing affiliates.