Premium
The Impacts of Technology, Trade and Outsourcing on Employment and Labor Composition
Author(s) -
Morrison Paul Catherine J.,
Siegel Donald S.
Publication year - 2001
Publication title -
scandinavian journal of economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.725
H-Index - 64
eISSN - 1467-9442
pISSN - 0347-0520
DOI - 10.1111/1467-9442.00243
Subject(s) - outsourcing , technological change , economics , workforce , investment (military) , labor demand , labour economics , production (economics) , function (biology) , composition (language) , wage , business , microeconomics , macroeconomics , economic growth , linguistics , philosophy , marketing , evolutionary biology , politics , biology , political science , law
Empirical studies of skill‐biased technological change are typically based on a simple production or cost function framework and limited information on technology and labor composition. In contrast, we simultaneously assess the impacts of trade, technology, and outsourcing on shifts in labor demand using a dynamic cost function framework and comprehensive measures of workforce composition and investment in technology. Our findings indicate that technological change has had the largest impact on changes in labor composition. However, the indirect impact of trade on shifts in employment augments its direct impact because trade stimulates computerization, which further exacerbates skill‐biased technological change.