Offshoring of white-collar services

Offshoring of white-collar services
Author: Artur Klimek
Publisher: Walter de Gruyter GmbH & Co KG
Total Pages: 191
Release: 2020-08-24
Genre: Business & Economics
ISBN: 3110690691

This is one of the few books on the market dealing with offshoring of professional services, a dynamic phenomenon of high relevance in the global economy. The market for offshore services is worth more than 1 trillion dollars annually and employs millions of people. Global offshoring of services has been recently undergoing a profound transformation due to automation and robotisation of tasks. It can be associated with the increased codifi cation of knowledge, commoditisation of services and advancement in technology. The global perspective has been supplemented by a detailed analysis of offshoring in Central and Eastern Europe. It witnesses a dynamic growth of foreign direct investment (FDI) in professional services, resulting in capital and knowledge transfers. This books is a result of a holistic approach and an interdisciplinary research. It is enriched with conclusions from meetings with representatives of: authorities responsible for attracting FDI; associations of offshoring fi rms; and enterprises operating in professional services. It was also a result of numerous discussions with scholars during academic conferences and research seminars.

Brookings Trade Forum: 2005

Brookings Trade Forum: 2005
Author: Susan M. Collins
Publisher: Brookings Institution Press
Total Pages: 526
Release: 2006-03-16
Genre: Business & Economics
ISBN: 9780815712930

Tentative contents include: •Offshoring: Threats and Opportunities Daniel Trefler (University of Toronto) •Modeling the Offshoring of White-Collar Services: From Comparative Advantage to the New Theories of Trade and FDI James Markusen (University of Colorado) •Globalization and the Outsourcing of Services: The Impact of Indian Offshoring Rafiq Dossani (Stanford University) •Offshoring in the Semiconductor Industry: A Historical Perspective Clair Brown and Greg Linden (University of California, Berkeley) •A Fairer Deal For America's Workers in a New Era of Offshoring Lael Brainard and Robert Litan (Brookings Institution and the Kauffman Foundation)

Offshoring (a.k.a. Offshore Outsourcing) and Job Insecurity Among U.S. Workers

Offshoring (a.k.a. Offshore Outsourcing) and Job Insecurity Among U.S. Workers
Author:
Publisher:
Total Pages: 0
Release: 2005
Genre:
ISBN:

Offshoring or offshore outsourcing is the term now being applied to describe the nascent practice among U.S. companies of contracting out the jobs of white-collar workers in service sector industries to firms located beyond our borders. The term is equally applicable to U.S. employers' outsourcing blue-collar workers' manufacturing jobs to other nations. As often is the case with a potential trend, however, few facts are available; instead, anecdotal accounts and varying estimates have been trumpeted in the media. No regularly collected series currently provides data on the number of workers who have lost their jobs to offshore outsourcing. The outsourcing of service sector jobs to specialized U.S. firms began in response to the early 1980s recessions. Employers increased their focus on the company's core mission and contracted out peripheral activities to other U.S. businesses. The 2001 recession prompted employers to achieve further efficiencies by utilizing now widely disseminated technologies that permit low cost, good quality, and high speed transmission of voice and data communications to extend offshore outsourcing beyond blue-collar manufacturing jobs to white-collar service sector jobs. Events also transpired during the intervening decade of the 1990s that enhanced other countries' ability to export services. Despite the labor market's turnaround, the state of mind that continues to prevail in the U.S. workforce is one that characterized an earlier "jobless recovery" when white-collar workers first became aware that their jobs had become more insecure. White-collar workers, who are the majority of all U.S. workers and of service sector employment, again have become anxious about their losing jobs. Although offshore outsourcing has been blamed for the employment cutbacks that followed the 2001 recession, it might have caused (at most) 10% of those job losses. Some believe we have seen just the tip of the offshoring iceberg, with perhaps a total of 3.4 million service sector jobs moving overseas by 2015 in a range of fairly well paid white-collar occupations. If true, the number of jobs sent offshore over the long projection period might account for just 2% of U.S. employment in a single year. In contrast, others expect that for a variety of reasons many companies will lose their enthusiasm for the business practice and use it more strategically. Congress has a longstanding interest in assisting workers who lose jobs through no fault of their own. In addition to unemployment benefits, policymakers traditionally have provided extra help through the Trade Adjustment Assistance (TAA) program to workers who lose jobs due to international trade. TAA generally does not apply to trade-induced layoffs in the service sector, however. Laws already exist to help workers undertake additional education and training (e.g., the Workforce Investment Act) should that be necessary for their reemployment. The most commonly suggested new proposal involves provision of wage insurance to displaced workers. This report will be updated as warranted.

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

Impacts of Offshoring on Jobs and Small U.S. Manufacturers
Author: Jonathan S. Krekl
Publisher:
Total Pages: 0
Release: 2012
Genre: Labor market
ISBN: 9781608760640

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.

The Oxford Handbook of Offshoring and Global Employment

The Oxford Handbook of Offshoring and Global Employment
Author: Ashok Bardhan
Publisher: Oxford University Press
Total Pages: 696
Release: 2013-04-09
Genre: Business & Economics
ISBN: 0199324050

The Oxford Handbook of Offshoring and Global Employment deals with a key issue of our time: How do globalization, economic growth and technological developments interact to impact employment? The book brings together eminent authors from a wide range of countries around the world, drawing on their diverse academic and policymaking backgrounds, and specific national or regional settings to assess how global economic changes have affected employment opportunities. The book is unique in a number of ways - It has a global reach, presenting analyses and viewpoints from both developed and developing countries, from all continents; its timing and context is particularly instructive, since most papers are located in the aftermath of the global financial crisis; and it addresses a wide range of questions-How do different types of offshoring and global linkages impact employment? How is the skill mix of the labor force impacted by globalization? How do institutional structures and regulations influence the outcome of globalization in developed and developing countries? Individual chapters analyze how the impact of global linkages on national economies is mediated through a number of structural aspects of the economy - its institutional and industrial structure, its resource base, its predominant firm type, its comparative advantage, and its regulatory practices. The chapters in the book cover both manufacturing and services sectors, and many chapters also address policy issues regarding innovation and job creation.

A Sorted Tale of Globalization

A Sorted Tale of Globalization
Author: Runjuan Liu
Publisher:
Total Pages: 0
Release: 2011
Genre: Economics
ISBN:

We study how the rise of trade in services with China and India has impacted U.S. labour markets. The topic has two understudied aspects: it deals with service trade (most studies deal with manufacturing trade) and it examines the historical first of U.S. workers competing with educated but low-wage foreign workers. Our empirical agenda is made complicated by the endogeneity of service imports and the endogenous sorting of workers across occupations. To develop an estimation framework that deals with these, we imbed a partial equilibrium model of 'trade in tasks' within a general equilibrium model of occupational choice. The model highlights the need to estimate labour market outcomes using changes in the outcomes of individual workers and, in particular, to distinguish workers who switch 'up' from those who switch 'down'. (Switching 'down' means switching to an occupation that pays less on average than the current occupation). We apply these insights to matched CPS data for 1996-2007. The cumulative 10-year impact of rising service imports from China and India has been as follows. (1) Downward and upward occupational switching increased by 17% and 4%, respectively. (2) Transitions to unemployment increased by a large 0.9 percentage points. (3) The earnings of occupational 'stayers' fell by a tiny 2.3%. (4) The earnings impact for occupational switchers is not identified without an assumption about worker sorting. Under the assumption of no worker sorting, downward (upward) switching was associated with an earning change of -13.9% (+12.1%). Under the assumption of worker sorting, there is no statistically significant impact on earnings.

A sorted tale of globalization : white collar jobs and the rise of service offshoring

A sorted tale of globalization : white collar jobs and the rise of service offshoring
Author: Runjuan Liu
Publisher:
Total Pages: 63
Release: 2011
Genre: Economics
ISBN:

We study how the rise of trade in services with China and India has impacted U.S. labour markets. The topic has two understudied aspects: it deals with service trade (most studies deal with manufacturing trade) and it examines the historical first of U.S. workers competing with educated but low-wage foreign workers. Our empirical agenda is made complicated by the endogeneity of service imports and the endogenous sorting of workers across occupations. To develop an estimation framework that deals with these, we imbed a partial equilibrium model of 'trade in tasks' within a general equilibrium model of occupational choice. The model highlights the need to estimate labour market outcomes using changes in the outcomes of individual workers and, in particular, to distinguish workers who switch 'up' from those who switch 'down'. (Switching 'down' means switching to an occupation that pays less on average than the current occupation). We apply these insights to matched CPS data for 1996-2007. The cumulative 10-year impact of rising service imports from China and India has been as follows. (1) Downward and upward occupational switching increased by 17% and 4%, respectively. (2) Transitions to unemployment increased by a large 0.9 percentage points. (3) The earnings of occupational 'stayers' fell by a tiny 2.3%. (4) The earnings impact for occupational switchers is not identified without an assumption about worker sorting. Under the assumption of no worker sorting, downward (upward) switching was associated with an earning change of -13.9% (+12.1%). Under the assumption of worker sorting, there is no statistically significant impact on earnings.

Is White the New Blue?

Is White the New Blue?
Author:
Publisher:
Total Pages:
Release: 2007
Genre:
ISBN:

Since the mid-1990s, offshore production has become increasingly important in white-collar, service sector activities in the U.S. economy. This development coincided with a stagnant gender wage gap over this period. This paper categorizes white-collar service sector occupations into two groups based on whether or not an occupation is at risk of being offshored and assesses the relative contribution of these two groupings, through their employment and wages, to the stagnation of the gender wage gap between 1995 and 2005. Applying standard decomposition methods to Current Population Survey and Displaced Workers Survey data shows that in at-risk occupations, low-wage women & rsquo;s employment declined, leading to an artificial increase in the average wage of remaining women thereby narrowing the gender wage gap. This improvement in the gender wage gap was offset by the relative growth of high-wage male employment in atrisk occupations and the widening of the gender wage gap within not-at-risk occupations.