Labor arbitrage : impact of offshoring in the U.S. labor market
Name
857769560-MIT.pdf
Description
Full printable version
Size
7.85 MB
Format
Adobe PDF
Checksum (MD5)
1e8fe2311d3edd370347618f91c1bcc8
Author(s)
Malibran, Jorge (Malibran Ángel)
Advisor(s)
Nicholas A. Ashford.
Alternative Title
Impact of offshoring in the U.S. labor market
Labor arbitrage : impact of global sourcing in western labor markets
Date Issued
2013
Publisher
Massachusetts Institute of Technology
Abstract
The rapid growth of offshoring has ignited a contentious debate over its impact on the US labor market. Between 1983 and 2002, the United States economy lost 6 million jobs in manufacturing and income inequality increased sharply [Ebenstein, 2011]. Today due to the falling costs of transportation, coordination and communication this tendency is accelerating affecting both white and blue collar workers. While there many papers that analyze the productivity increase due to offshoring practices [Mitra, 2007], [Global Insight, 2004], [Houseman, 2010], most of them just assume that this improvement is automatically translated into lower prices therefore benefiting consumers. Nevertheless this assumption only holds in price competitive markets, which is not always the case. In this paper I will challenge the assumption of price competitive markets and argue how offshoring increases within-country income inequality. In addition I will analyze the aggregated effect of offshoring in the U.S. economy through both empirical and theoretical approaches.
Description
Thesis (S.M.)--Massachusetts Institute of Technology, Sloan School of Management, 2013.
Title as it appears in MIT Commencement Exercises program, June 2013: Labor arbitrage : impact of offshoring in the U.S. labor market. Cataloged from PDF version of thesis.
Includes bibliographical references (p. 34-36).
Subjects
Sloan School of Management.
MIT Department
Sloan School of Management
Terms of Use
M.I.T. theses are protected by
copyright. They may be viewed from this source for any purpose, but
reproduction or distribution in any format is prohibited without written
permission. See provided URL for inquiries about permission.
copyright. They may be viewed from this source for any purpose, but
reproduction or distribution in any format is prohibited without written
permission. See provided URL for inquiries about permission.
Persistent DSpace Link
