Offshoring and unemployment: The role of search frictions labor mobility

• 成果类型: Article
• 署名作者: Mitra, Devashish; Ranjan, Priya
• 署名单位: University of California System; University of California Irvine; Syracuse University
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/j.jinteco.2010.04.001
• 发表日期: 2010
• 页码: 219-229
• 关键词: trade; Offshoring; search; unemployment

摘要

In a two-sector, general-equilibrium model with labor-market search frictions, we find that the wage increases and sectoral unemployment decreases upon offshoring in the presence of perfect intersectoral labor mobility. If, as a result, labor moves to the sector with the lower (or equal) vacancy costs, there is an unambiguous decrease in economywide unemployment. With imperfect intersectoral labor mobility, unemployment in the offshoring sector can rise, with an unambiguous unemployment reduction in the non-offshoring sector. Imperfect labor mobility can result in a mixed equilibrium in which only some firms offshore, with unemployment in the offshoring sector rising. (C) 2010 Elsevier B.V. All rights reserved.