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- W1517445380 abstract "This paper analyzes the impact increased offshoring has on labor income risk.It is therefore distinct from a large number of studies explaining the level effectsof globalization on the labor market in that it takes a look at effects on secondmoments, i.e. the variance of incomes. It provides an assessment that directly connectslabor income risk and offshoring trends at the sector level. Importantly, wedistinguish between transitory and permanent shocks to individual income. Permanentincome risk is defined as variance of shocks to income that do not fade out overtime and are assumed to be not self-insurable. It thus has a particular relevancefor individual welfare. Our findings suggest that offshoring tends to lower permanentincome risk. This effect is particularly strong for offshoring to low-incomedestinations. Hence, there could be potential welfare gains when domestic firmsincreasingly offshore production to foreign countries." @default.
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- W1517445380 date "2012-01-01" @default.
- W1517445380 modified "2023-09-23" @default.
- W1517445380 title "Offshoring and Labor Income Risk" @default.
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- W1517445380 doi "https://doi.org/10.2139/ssrn.2039244" @default.
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