Assessing the Impact of IT-Enabled Services Offshoring on U.S. Employment and Earnings

Assessing the Impact of IT-Enabled Services Offshoring on U.S. Employment and Earnings PDF Author: Andrew Blair
Publisher:
ISBN:
Category :
Languages : en
Pages : 0

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Book Description
This paper provides a preliminary assessment of the recent impact of what can be called the “IT-enabled services offshoring” process on U.S. domestic employment and earnings in relevant services sectors. It draws upon relatively new international services trade data sets developed by the U.S. Department of Commerce's Bureau of Economic Analysis (BEA), which are used in conjunction with service employment and real wage data from the U.S. Department of Labor's Current Employment Statistics (CES), and deals with the years since the turn of the new century, when concerns about the IT-enabled services offshoring process sparked intense professional discussion. The study documents that U.S. trade in IT-enabled services is generally a two-directional phenomenon, entailing both an import as well as an export dimension. While the overall U.S. trade balance for IT-enabled services has been consistently positive, consistently negative trade balances are observable in computer services, an indication of substantial offshoring in that area; moreover, the significant two-way trade pattern in the telecommunications area suggests the presence of offshoring in that area as well. With respect to the other IT-enabled categories (e.g., legal, accounting, and architectural and engineering services) consistent two-way trade has existed in all of the areas reviewed, thus suggesting the presence of some degree of offshoring across all areas. However, while not representing a congruent mapping of categories with the international trade in services data, the available occupational employment and earnings data indicate that the overall relative impact of the IT-enabled offshoring phenomenon has thus far apparently been modest, reflecting most notably the small shares that the relevant occupational categories represent in overall U.S. private employment. Moreover, the observable diverse annual fluctuations and trends in relative occupational employment and earnings in these services sectors are what one would reasonably expect in a huge continental labor market (with its numerous regional and local sub-markets) that is influenced by a variety of forces, including but beyond IT-enabled offshoring.

Assessing the Impact of IT-Enabled Services Offshoring on U.S. Employment and Earnings

Assessing the Impact of IT-Enabled Services Offshoring on U.S. Employment and Earnings PDF Author: Andrew Blair
Publisher:
ISBN:
Category :
Languages : en
Pages : 0

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Book Description
This paper provides a preliminary assessment of the recent impact of what can be called the “IT-enabled services offshoring” process on U.S. domestic employment and earnings in relevant services sectors. It draws upon relatively new international services trade data sets developed by the U.S. Department of Commerce's Bureau of Economic Analysis (BEA), which are used in conjunction with service employment and real wage data from the U.S. Department of Labor's Current Employment Statistics (CES), and deals with the years since the turn of the new century, when concerns about the IT-enabled services offshoring process sparked intense professional discussion. The study documents that U.S. trade in IT-enabled services is generally a two-directional phenomenon, entailing both an import as well as an export dimension. While the overall U.S. trade balance for IT-enabled services has been consistently positive, consistently negative trade balances are observable in computer services, an indication of substantial offshoring in that area; moreover, the significant two-way trade pattern in the telecommunications area suggests the presence of offshoring in that area as well. With respect to the other IT-enabled categories (e.g., legal, accounting, and architectural and engineering services) consistent two-way trade has existed in all of the areas reviewed, thus suggesting the presence of some degree of offshoring across all areas. However, while not representing a congruent mapping of categories with the international trade in services data, the available occupational employment and earnings data indicate that the overall relative impact of the IT-enabled offshoring phenomenon has thus far apparently been modest, reflecting most notably the small shares that the relevant occupational categories represent in overall U.S. private employment. Moreover, the observable diverse annual fluctuations and trends in relative occupational employment and earnings in these services sectors are what one would reasonably expect in a huge continental labor market (with its numerous regional and local sub-markets) that is influenced by a variety of forces, including but beyond IT-enabled offshoring.

Estimating the Impact of Trade and Offshoring on American Workers Using the Current Population Surveys

Estimating the Impact of Trade and Offshoring on American Workers Using the Current Population Surveys PDF Author: Avraham Ebenstein
Publisher:
ISBN:
Category : Globalization
Languages : en
Pages : 41

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Book Description
In this paper, we link industry-level data on offshoring activities of U.S. multinational firms, import penetration, and export shares with individual level worker data from the Current Population Surveys. We examine whether increasing globalization through offshoring or trade has led to reallocation of labor, both within and out of manufacturing, and measure its impact on the wages of domestic workers. We also control for the "routineness" of individual occupations. Our results suggest that (1) offshoring to high wage countries is positively correlated with U.S. manufacturing employment (2) offshoring to low wage countries is associated with U.S. employment declines (3) wages for workers who remain in manufacturing are generally positively affected by offshoring; in particular, we find that wages are positively associated with an increase in U.S. multinational employment in high income locations (4) much of the negative effects of globalization operate through downward pressure on wages of workers who leave manufacturing to take jobs in agriculture or services and (5) the downward pressure on aggregate U.S. wages operating through import competition has been quite important for some occupations. This effect has been overlooked because it operates across, not within, industries.

The Effect of Offshoring on the Information Technology Sector

The Effect of Offshoring on the Information Technology Sector PDF Author: Mohammed K. Yusuf
Publisher: iUniverse
ISBN: 1450288936
Category : Technology & Engineering
Languages : en
Pages : 60

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Book Description
This book is generated from a thesis written by this author in 2009 and provides an insight into the myth that is offshore outsourcing. The Information Technology field has often been criticized for its offshore outsourcing strategy and the negative impact it has on the American Economy. This book however, will provide insight and data gathered over the last twenty years, to show the true effects of offshore outsourcing. The advantages provided by offshore outsourcing are evident through the research in this book. Are we really losing all our jobs to offshore outsourcing? The rapid deployment of call centers to Asia Pac, has many claiming that all our jobs are overseas, this book gives you an insight into how globalization has affected the Information Technology field. The results might surprise you.

Impacts of Offshoring on Jobs and Small U.S. Manufacturers

Impacts of Offshoring on Jobs and Small U.S. Manufacturers PDF Author: Jonathan S. Krekl
Publisher:
ISBN: 9781608760640
Category : Labor market
Languages : en
Pages : 0

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Book Description
Offshoring, also known as offshore outsourcing, is the term now being used to describe a practice among companies located in the United States of contracting with businesses beyond U.S. borders to perform services that would otherwise have been provided by in-house employees in white-collar occupations. The term is equally applicable to U.S. firms offshoring the jobs of blue-collar workers on textile and auto assembly lines, for example, which has been taking place for decades. The extension of offshoring from U.S. manufacturers to service providers has heightened public policy concerns about the extent of job loss and foregone employment opportunities among U.S. workers. This concern is especially pertinent to policymakers because of a national unemployment rate persistently exceeding 9 per cent despite the end of the latest recession. This book discusses the impacts of offshoring on jobs and small U.S. manufacturers.

Growth in services outsourcing to India propellant or drain on the U.S. economy?

Growth in services outsourcing to India propellant or drain on the U.S. economy? PDF Author: William Greene
Publisher: DIANE Publishing
ISBN: 1428957723
Category : Offshore outsourcing
Languages : en
Pages : 64

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Book Description


Gains from Offshoring?

Gains from Offshoring? PDF Author: Ryan Monarch
Publisher:
ISBN:
Category :
Languages : en
Pages :

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Book Description


Offshoring and Employment Trends and Impacts

Offshoring and Employment Trends and Impacts PDF Author: OECD
Publisher: OECD Publishing
ISBN: 9264030948
Category :
Languages : en
Pages : 224

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Book Description
This report defines offshoring in detail, describes the wide-ranging effects that offshoring can have on employment both positively and negatively, and outlines the policy implications, suggesting ways to limit the downside of offshoring while building trust among stakeholders.

Service Offshoring, Productivity, and Employment

Service Offshoring, Productivity, and Employment PDF Author: Mary Amiti
Publisher: INTERNATIONAL MONETARY FUND
ISBN: 9781451862577
Category : Business & Economics
Languages : en
Pages : 0

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Book Description
This paper estimates the effects of offshoring on productivity in U.S. manufacturing industries between 1992 and 2000, using instrumental variables estimation to address the potential endogeneity of offshoring. It finds that service offshoring has a significant positive effect on productivity in the US, accounting for around 11 percent of productivity growth during this period. Offshoring material inputs also has a positive effect on productivity, but the magnitude is smaller accounting for approximately 5 percent of productivity growth. There is a small negative effect of less than half a percent on employment when industries are finely disaggregated (450 manufacturing industries). However, this affect disappears at more aggregate industry level of 96 industries indicating that there is sufficient growth in demand in other industries within these broadly defined classifications to offset any negative effects.

Offshoring and the Internationalization of Employment

Offshoring and the Internationalization of Employment PDF Author: Peter Auer
Publisher: International Labour Organization
ISBN: 9789290147831
Category : Business & Economics
Languages : en
Pages : 272

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Book Description
This collection of papers examines key trends in the internationalisation of employment, drawing on the proceedings of an ILO conference held in Annecy, France in April 2005. The papers focus on three related issues: the impacts of trade and investment abroad, including the offshoring of production of goods and services, and effects on the winners and losers in terms of employment; adjustment methods for coping with the short and medium term problems related to the globalisation of employment; and the importance of international instruments to help ensure a level playing field in trade and promote development, drawing on established rights and international labour standards.

Gains from Offshoring? Evidence from New U.S. Microdata

Gains from Offshoring? Evidence from New U.S. Microdata PDF Author: Ryan Monarch
Publisher:
ISBN:
Category :
Languages : en
Pages :

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Book Description
We construct a new linked data set with over one thousand off shoring events by matching Trade Adjustment Assistance program petition data to micro-data from the U.S. Census Bureau. We exploit this data to assess how offshoring impacts domestic firm-level aggregate employment, output, wages and productivity. A class of models predicts that more productive firms engage in offshoring, and that this leads to gains in output and (measured) productivity, and potential gains in employment and wages, in the remaining domestic activities of the offshoring firm. Consistent with these models, we find that offshoring firms are on average larger and more productive compared to non-offshorers. However, we fi nd that offshorers suffer from a large decline in employment (32 percent) and output (28 percent) relative to their peers even in the long run. Further, we find no significant change in average wages or in total factor productivity measures at affected firms. We find these results robust to a variety of checks. Thus we find no evidence for positive spillovers to the remaining domestic activity of firms in this large sample of offshoring events.