Global Production Sharing and Rising Inequality: A Survey of Trade and Wages

Feenstra, Robert C.; Hanson, Gordon H.

doi:10.3386/w8372

Cited by 295 publications

(269 citation statements)

References 79 publications

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“…Feenstra and Hanson (1996, 2001) consider a scenario in which offshoring is motivated by international competition in industries producing heterogeneous inputs subject to differences in the relative demand for unskilled and skilled labor. Yeaple (2005) introduces a model of heterogeneous firms and workers where international competition spurs more productive firms to enter the export market, in turn raising the demand for skilled labor and thus shifting relative wages.…”

Section: Task Trade Location and Labor Demand: A Review Of The Litmentioning

confidence: 99%

“…Trade in intermediates and tasks is difficult to measure accurately, but it appears to be significant and rapidly growing (Feenstra and Hanson 2001; Baldwin 2006; Blinder 2006; Grossman and Rossi-Hansberg 2006; Venables 2009). Fully 50% of the rapid growth in merchandise trade between 1962 and 1999 can be attributed to national specialization in subsets of manufacturing production (Yi 2003).…”

Section: Task Trade Location and Labor Demand: A Review Of The Litmentioning

confidence: 99%

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Trading away what kind of jobs? Globalization, trade and tasks in the US economy

Kemeny

Rigby

2011

Rev World Econ

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Economists and other social scientists are calling for a reassessment of the impact of international trade on labor markets in developed and developing countries. Classical models of globalization and trade, based upon the international exchange of finished goods, fail to capture the fragmentation of much commodity production and the geographical separation of individual production tasks. This fragmentation, captured in the growing volume of intra-industry trade, prompts investigation of the effects of trade within, rather than between, sectors of the economy. In this paper we examine the relationship between international trade and the task structure of US employment. We link disaggregate US trade data from 1972 to 2006, the NBER manufacturing database, the Decennial Census, and occupational and task data from the Dictionary of Occupational Titles. Within-industry shifts in task characteristics are linked to import competition and technological change. Our results suggest that trade has played a major role in the growth in relative demand for nonroutine tasks, particularly those requiring high levels of interpersonal interaction.

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Section: Task Trade Location and Labor Demand: A Review Of The Litmentioning

confidence: 99%

Section: Task Trade Location and Labor Demand: A Review Of The Litmentioning

confidence: 99%

Trading away what kind of jobs? Globalization, trade and tasks in the US economy

Kemeny

Rigby

2011

Rev World Econ

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“…3 See evidence in Acemoglu (2002). 4 Such as the Stolper Samuelson effect -see, for example, Krugman (2000) on their relevance, or outsourcing modelsà la Feenstra and Hanson (2004). 5 Unel (2010) introduces heterogeneous firms in a framework similar to that of Epifani and Gancia (2008), but he concentrates on the reallocation of market shares between sectors as a driver of the skill premium.…”

Section: Introductionmentioning

confidence: 99%

Trade between symmetric countries, heterogeneous firms, and the skill premium

Vannoorenberghe

2011

Canadian J of Economics

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This paper examines the effects of trade liberalization between symmetric countries on the skill premium. I introduce skilled and unskilled labour in a model of trade with heterogeneous firmsà la Melitz (2003) and assume a production technology such that more productive firms are more skill intensive. I show that the effects of trade liberalization on wage inequality crucially depend on the type of trade costs considered and on their initial size. While fixed costs of trade have a potentially non-monotonic effect on the skill premium, a drop in variable trade costs unambiguously and substantially raises wage inequality. JEL classification: F12, F16Commerce entre pays symétriques, firmes hétérogènes, et primeà l'habileté. Ce mémoire examine les effets de la libéralisation du commerce entre pays symétriques sur la primeà l'habileté. On introduit du travail qualifié et non qualifié dans un modèle de commerce avec des firmes hétérogènesà la Melitz (2003), et on postule l'existence d'une technologie de production telle que les firmes plus productives ont une intensité plus grande d'utilisation des habilités. On montre que les effets de la libéralisation du commerce sur l'inégalité des salaires dépendent de manière cruciale du type de coûts du commerce pris en compte et de leur taille initiale. Alors que les coûts fixes du commerce ont un effet potentiellement non-monotone sur la prime aux habiletés, une chute dans les coûts variables du commerce augmente substantiellement et sans ambiguïté l'inégalité des salaires.

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“…In such a manner, the findings presented by Paul Krugman in the paper "The Spatial Economy: Cities, Regions, and International Trade" (cited in Feenstra, 2001) suggest that even provided there are no fixed geographical parameters in economic models, the global economic system is being organized within the areas of industrial specialization. Trade models in GPSs determine distribution of actual economic benefits from trade between individual countries.…”

Section: Literature Reviewmentioning

confidence: 99%

Development of global production networks in a global environment

Khmara¹,

Grinenko²,

Koroied³

et al. 2017

Problems and Perspectives in Management

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Production systems in the structure of economic systems occupy the most fundamental place and act as both initial and basic subsystem of any economic development. There is a tendency to change the forms of production and the study of these process systems poses a wider aspect of their dynamics analysis. The article tries to prove both theoretically and practically that global production networks are one of the most important factors in the innovative transformation of countries and regions. It is concluded due to global production networks, being the channel for the transfer of global knowledge and technical know-how to regional structures, regions of the former periphery have quickly become developed, innovative regions with a specialization in the sector of highly qualified services, production of high-tech products, and generation of scientific knowledge. For transnational companies global production networks reduce their costs and financial risks by sharing with other companies, as well as global division of labor, an important part of global production.

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Global Production Sharing and Rising Inequality: A Survey of Trade and Wages

Cited by 295 publications

References 79 publications

Trading away what kind of jobs? Globalization, trade and tasks in the US economy

Trading away what kind of jobs? Globalization, trade and tasks in the US economy

Trade between symmetric countries, heterogeneous firms, and the skill premium

Development of global production networks in a global environment

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