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Title: Offshoring and Skills Demand

Citation Type: Miscellaneous

Publication Year: 2018

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Abstract: This paper studies how offshoring-related layoff events change the mix of skills that are demanded by trade-affected firms. Our analysis relies on a novel data set which combines the universe of Trade Adjustment Assistance (TAA) petitions filed by US firms during 2010-2015 with detailed information on online job vacancies. TAA petitions allow us to precisely identify the timing of layoff events, the number of affected workers, and the type of offshoring resulting in the layoff (materials versus service). Utilizing within firm variation in the timing of filing a TAA petition, we find little evidence that TAA petitions lead to a change in the monthly number of vacancies a firm posts online. In contrast, we find that both materials and service offshoring events lead to an increase in the share of vacancies requiring soft skills (such as communication and teamwork). Service offshoring events are also associated with an increase in the demand for hard skills (such as math and problem solving).

Url: https://conference.iza.org/conference_files/Statistic_2018/mansour_h3338.pdf

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Authors: Kuhn, Peter; Luck, Philip; Mansour, Hani

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Data Collections: IPUMS USA

Topics: Labor Force and Occupational Structure

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