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Erscheinungsjahr: 
2013
Schriftenreihe/Nr.: 
University of Tübingen Working Papers in Economics and Finance No. 64
Verlag: 
University of Tübingen, Faculty of Economics and Social Sciences, Tübingen
Zusammenfassung: 
We offer a theoretical explanation and empirical evidence for a positive link between increased offshoring and individual skill upgrading. Skill upgrading takes the form of on-the-job training, complementing the existing literature, which mainly focuses on the retraining of workers after a direct job displacement through offshoring. To establish a link between offshoring and on-the-job training, we introduce an individual skill upgrading margin into the small-open-economy version of the Grossman and Rossi-Hansberg (2008) model of offshoring. In our model offshoring, by scaling up workers' wages, creates previously unexploited skill upgrading possibilities and, thus, leads to more on-the-job training. Using data from German manufacturing, we find strong empirical support for the prediction that increased offshoring is positively related to individual on-the-job training participation.
Schlagwörter: 
Offshoring
Tasks
Skill upgrading
On-the-job training
JEL: 
F10
F16
F61
Persistent Identifier der Erstveröffentlichung: 
Dokumentart: 
Working Paper

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