The impacts of technology, trade and outsourcing on employment and labor composition

Catherine J. Morrison Paul, Donald S. Siegel

Research output: Contribution to journalArticle

73 Scopus citations

Abstract

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.

Original languageEnglish (US)
Pages (from-to)241-264
Number of pages24
JournalScandinavian Journal of Economics
Volume103
Issue number2
DOIs
StatePublished - Jan 1 2001
Externally publishedYes

Keywords

  • Computers
  • Generalized Leontief dynamic cost function
  • Labor demand
  • Outsourcing
  • Skill-biased technological change

ASJC Scopus subject areas

  • Economics and Econometrics

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