Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/26085 
Authors: 
Year of Publication: 
2007
Series/Report no.: 
CESifo Working Paper No. 2040
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
I study the effects of service offshoring on white-collar employment, using highly disaggregated occupational data for the U.S.. I present a structural model of the firm's behavior that allows tractable derivation of labor demand elasticities for highly detailed occupations. I estimate the model using Quasi-Maximum Likelihood, to simultaneously account for the high degree of censoring of the employment variable and the small cross-sectional dimension of the panel. I find that service offshoring is skill-biased, because it raises employment among high-skilled occupations and lowers employment among medium- and low-skilled ones. Within each skill group, service offshoring penalizes tradeable occupations and tends to benefit complex non tradeable jobs.
JEL: 
F16
J23
C34
Document Type: 
Working Paper
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