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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 establishments and firms. Our analysis relies on a novel data set which combines the universe of Trade Adjustment Assistance (TAA) petitions filed by US establishments 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 establishment and within firm variation in the timing of filing a TAA petition, we find that service offshoring events do not change the overall number of posted job vacancies at either the establishment or firm levels. However, service offshoring leads to an increase in the demand for "soft" skills (such as communication) and in the demand for "specific skills" (such as computer) across establishments within the same firm. Conversely, we find that materials offshoring events reduce demand for labor while having no impact on the composition of skills demand.

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

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

Publisher: University of California Santa Barbara

Data Collections: IPUMS USA

Topics: Labor Force and Occupational Structure

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