Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/98161
Authors: 
Hogrefe, Jan
Wrona, Jens
Year of Publication: 
2014
Series/Report no.: 
DICE Discussion Paper 148
Abstract: 
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-thejob 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 a variant of the Grossman and Rossi-Hansberg (2008) model of offshoring. By scaling up worker's wages, offshoring in our model creates previously unexploited skill upgrading possibilities and, thus, leads to more on-the-job training. Using data from German manufacturing, we establish a causal link between the growth in industry-level offshoring and an increased on-the-job training propensity at the individual level.
Subjects: 
Offshoring
Tasks
Skill upgrading
On-the-job training
JEL: 
F10
F16
F61
ISBN: 
978-3-86304-147-2
Document Type: 
Working Paper

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