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Title: Service Offshoring and White-Collar Employment
Citation Type: Journal Article
Publication Year: 2010
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Abstract: This paper empirically studies the effects of service offshoring on white-collar employment, usingdata for more than 100 US occupations over the period 19972006. A model of firm behaviour basedon separability allows derivation of the labour demand elasticity with respect to service offshoring foreach occupation. Estimation is performed with quasi-maximum likelihood, to account for high degreesof censoring in the employment variable. The estimated elasticities are then related to proxies for theskill level and the degree of tradability of the occupations. Results suggest that service offshoringis skill-biased, because it increases employment in more skilled occupations relative to less skilledoccupations. At a given skill level, however, service offshoring penalizes tradable occupations relativeto non-tradable occupations.
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Authors: Crino, Rosario
Periodical (Full): Review of Economic Studies
Issue: 2
Volume: 77
Pages: 595-632
Data Collections: IPUMS USA
Topics: Labor Force and Occupational Structure
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