Offshoring domestic jobs

• 成果类型: Article
• 署名作者: Egger, Hartmut; Kreickemeier, Udo; Wrona, Jens
• 署名单位: University of Bayreuth; Technische Universitat Dresden
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/j.jinteco.2015.03.010
• 发表日期: 2015
• 页码: 112-125
• 关键词: Offshoring; heterogeneous firms; income inequality

摘要

We develop a two-country general equilibrium model, in which heterogeneous firms offshore routine tasks to a low-wage host country. In the presence of fixed costs for offshoring the most productive firms self-select into offshoring, which leads to a reallocation of domestic labor towards less productive uses if offshoring costs are high. As a consequence domestic welfare may fall. The reallocation effect is reversed and domestic welfare rises if offshoring costs are low. The aggregate income distribution, comprising wages and entrepreneurial incomes, becomes more unequal with offshoring. (C) 2015 Elsevier By. All rights reserved.