Estimating the Impact of Trade and Offshoring on American Workers Using the Current Population Surveys PDF Download
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Author: Avraham Y. Ebenstein
Publisher:
ISBN:
Category :
Languages : en
Pages : 57
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Book Description
The authors link industry-level data on trade and offshoring with individual-level worker data from the Current Population Surveys. They find that occupational exposure to globalization is associated with larger wage effects than industry exposure. This effect has been overlooked because it operates between rather than within sectors of the economy. The authors also find that globalization is associated with a reallocation of workers across sectors and occupations. They estimate wage losses of 2 to 4 percent among workers leaving manufacturing and 4 to 11 percent among workers who also switch occupations. These effects are most pronounced for workers who perform routine tasks.
Author: Avraham Y. Ebenstein
Publisher:
ISBN:
Category :
Languages : en
Pages : 57
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Book Description
The authors link industry-level data on trade and offshoring with individual-level worker data from the Current Population Surveys. They find that occupational exposure to globalization is associated with larger wage effects than industry exposure. This effect has been overlooked because it operates between rather than within sectors of the economy. The authors also find that globalization is associated with a reallocation of workers across sectors and occupations. They estimate wage losses of 2 to 4 percent among workers leaving manufacturing and 4 to 11 percent among workers who also switch occupations. These effects are most pronounced for workers who perform routine tasks.
Author: Avraham Ebenstein
Publisher:
ISBN:
Category : Economic Theory and Research
Languages : en
Pages : 57
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Book Description
Abstract: The authors link industry-level data on trade and offshoring with individual-level worker data from the Current Population Surveys. They find that occupational exposure to globalization is associated with larger wage effects than industry exposure. This effect has been overlooked because it operates between rather than within sectors of the economy. The authors also find that globalization is associated with a reallocation of workers across sectors and occupations. They estimate wage losses of 2 to 4 percent among workers leaving manufacturing and 4 to 11 percent among workers who also switch occupations. These effects are most pronounced for workers who perform routine tasks.
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.
Author:
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ISBN:
Category :
Languages : en
Pages :
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Author:
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Category : Electronic book
Languages : en
Pages :
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Author: Han Wang
Publisher:
ISBN:
Category :
Languages : en
Pages :
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This dissertation contains three essays on how value-added trade affect the U.S. labor market outcomes. In the most recent presidential competition, we observed how voter angst against economic globalization had a considerable impact on the election results. This dissertation seeks to shed light on how the changes in exposure to value-added trade affect individual wages, the probability of being unemployed as well as the likelihood of being married with consideration of each worker's occupation, the level of skill, and gender. In the first essay, we link U.S. industry-level value-added trade data with U.S. worker-level data from the Current Population Surveys from 1995 to 2009. We find that U.S. occupational exposure to value-added imports has a negative effect on the wages earned by intermediate-routine workers, which leads to wage polarization among American workers. In particular, the polarization of wages is driven by occupational exposure to value-added imports of final goods from middle-income countries, while exposure to final goods imported from high-income countries has a negative, albeit more fairly distributed, effect across U.S. workers' wages. On the other hand, occupational exposure to value-added imports of intermediate goods from middle-income countries is associated with a positive wage effect for least-routine workers, signaling to the presence of strong complementarities between the group of least-routine workers and imports of intermediate goods from this group of countries. In the second essay, we investigate the contribution of the degree of occupation routineness and the level of a worker's skill in determining the effects of U.S. exposure to value-added trade on U.S. labor market outcomes. We apply three main approaches to examine how the interplay between routineness and skills is essential in explaining the effects of U.S. exposure to value-added trade flows. First, we find that the increase in occupational exposure to value-added imports of final goods from middle-income countries is the primary driver of polarization of wages in the U.S. labor market within each skill group, where the effect on workers in the occupations with moderate levels of routineness is most adversely affected. Comparing the wage effects for workers within each routineness group, we find that skilled workers tend to face smaller pressure on their wages from import competition than the unskilled. Second, we examine the impact of exposure to value-added trade on the probability of being unemployed at the worker level. We show that an increase in exposure to value-added imports will raise the employment-related uncertainty for unskilled workers relative to skilled workers. Third, we estimate the transition costs across workers who have trade-induced occupation switches between two consecutive periods. Results suggest that occupation switch is very costly for all unskilled workers as well as for the skilled workers who are involved with the least-routine occupations. Notice that the effect of trade might not be gender-neutral. In the third paper, we complement the existing literature by providing evidence that increasing import exposure has differential effects on individual outcomes depending on the workers' gender and on the degree of routineness of their occupations. We explore the effects of gender-specific exposure to value-added trade on individual outcomes such as wages, the probability of being unemployed, and the likelihood of being married. Despite that the male-specific exposures to value-added trade are highly comparable to those female-specific measures, we find it is powerful enough to distinguish their differential effects across gender. We find that the effect of trade is symmetric across genders when it comes to wage effects but asymmetric in terms of the probability of being unemployed and in the likelihood of being married. Our findings on wages suggest that an increase in exposure to value-added imports has the most negative effect on intermediate-routine workers for both gender groups, which results in wage polarization for both groups. As for the probability of being unemployed, we find that the greater the male-specific exposure to value-added imports, the greater the chances of being unemployed for male workers in the intermediate-routine occupations, while the effects for other men are insignificant. In the case of female workers, rising import exposure is associated with an increase in the uncertainty related to unemployment for those in least-routine occupations. Finally, for the likelihood of getting married, the effect for female workers is insignificant regardless of the degree of routineness. In the case of men, the likelihood of getting married decreases for males in intermediate-routine occupations when exposure to imported final goods increases, while, on the other hand, males in least-routine occupations are more likely to get married with an increase in exposure to intermediate inputs.
Author: Jakob Engel
Publisher: World Bank Publications
ISBN: 1464817057
Category : Business & Economics
Languages : en
Pages : 206
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Book Description
Trade is a well-established driver of growth and poverty reduction.But changes in trade policy also have distributional impacts that create winners and losers. It is vital to understand and clearly communicate how trade affects economic well-being across all segments of the population, as well as how policies can more effectively ensure that the gains from trade are distributed more widely. The Distributional Impacts of Trade: Empirical Innovations, Analytical Tools, and Policy Responses provides a deeper understanding of the distributional effects of trade across regions, industries, and demographic groups within countries over time. It includes an overview (chapter 1); a review of innovations in empirical and theoretical work covering the impacts of trade at the subnational level (chapter 2); highlights from empirical case studies on Bangladesh, Brazil, Mexico, South Africa, and Sri Lanka (chapter 3); and a policy agenda to improve distributional outcomes from trade (chapter 4). This book comes at a time when the shock from COVID-19 (coronavirus) adds to an already uncertain trade policy environment in which the value of the multilateral trading system has been under increased scrutiny. A better understanding of how trade affects distributional outcomes can lead to more inclusive policies and support the ability of countries to maximize broad-based benefits from trade.
Author: W. Charles Sawyer
Publisher: Routledge
ISBN: 1317753798
Category : Business & Economics
Languages : en
Pages : 528
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Book Description
Applied International Economics, 4th Edition offers a modern and accessible treatment of international economics, shifting the emphasis from pure theory to the application of theory by using some of the key tools of economic analysis. This new edition of the text formerly known as International Economics makes the real-life application of international economics clearer than ever before, and focuses on the basics that students will need in order to analyse information on the world economy throughout their future careers. The new edition has been refocused, revised and thoroughly updated. Key features include: A new chapter on the firm in international trade accompanies a greater focus on firms in the world economy, how trade influences income inequality and how businesses can apply principles of international economics. New or expanded chapter subsections on topics including the intersection of international economics and international business; money, interest rates, and the exchange rate; and the dynamic gains from trade. Replacement and expansion of case studies to bring them fully up to date. Chapters on economic development in both the international trade and finance sections on the book to reflect the increasing importance of low- and middle-income countries in the world economy. A streamlined treatment of Purchasing Power Parity, leading into the concept of the real exchange rate. Expanded treatment of the Eurozone and the Eurozone crisis. Written in a thorough and engaging style, the book covers topics at a level appropriate for students specializing in business or international relations, as well as for economics students. Along with a wealth of case studies and real-life examples, the book offers extensive pedagogy including a companion website, end of chapter summaries, explanations of key concepts and terms, problem sets and additional readings.
Author: Tommaso Tempesti
Publisher:
ISBN:
Category : Electronic dissertations
Languages : en
Pages : 113
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Author: Edward E. Leamer
Publisher: MIT Press
ISBN: 0262300834
Category : Business & Economics
Languages : en
Pages : 207
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Book Description
A review of the Heckscher–Ohlin framework prompts a noted economist to consider the methodology of economics. In this spirited and provocative book, Edward Leamer turns an examination of the Heckscher–Ohlin framework for global competition into an opportunity to consider the craft of economics: what economists do, what they should do, and what they shouldn't do. Claiming “a lifetime relationship with Heckscher–Ohlin,” Leamer argues that Bertil Ohlin's original idea offered something useful though vague and not necessarily valid; the economists who later translated his ideas into mathematical theorems offered something precise and valid but not necessarily useful. He argues further that the best economists keep formal and informal thinking in balance. An Ohlinesque mostly prose style can let in faulty thinking and fuzzy communication; a mostly math style allows misplaced emphasis and opaque communication. Leamer writes that today's model- and math-driven economics needs more prose and less math. Leamer shows that the Heckscher–Ohlin framework is still useful, and that there is still much work to be done with it. But he issues a caveat about economists: “What we do is not science, it's fiction and journalism.” Economic theory, he writes, is fiction (stories, loosely connected to the facts); data analysis is journalism (facts, loosely connected to the stories). Rather than titling the two sections of his book Theory and Evidence, he calls them Economic Fiction and Econometric Journalism, explaining, “If you find that startling, that's good. I am trying to keep you awake.”
