{"title":"Offshoring, Globalization, Skill: Impacts of International Offshoring on Employment and Wages","authors":"Tapash Kanti Rakshit, Tanni Dev","doi":"10.31014/aior.1992.06.03.528","DOIUrl":null,"url":null,"abstract":"The phenomenon of offshoring has become a prominent topic in contemporary economic discussions, closely tied to globalization and communication. Offshoring involves importing input items from foreign countries at a lower cost, enabling cost-effective production. However, it raises concerns among workers regarding job loss and wage reduction. The aspect of collective bargaining, crucial in understanding the dynamics of offshoring, has often been overlooked in previous research. This journal paper aims to address this research gap by examining the impact of collective bargaining on determining equilibrium wages in the context of offshoring. Through a comprehensive analysis of three cases—Autarky, Small Country, and a two-country scenario—we explore how fluctuations in offshoring costs influence employment levels and wage rates. Additionally, we investigate the policy implications of offshoring decisions in one country and their effects on its partner country. The study also considers the role of skill acquisition in the offshoring process and its multifaceted impact on the labor market. By shedding light on the influence of collective bargaining in determining equilibrium wages within the offshoring framework, this research provides valuable insights for policymakers, academics, and industry practitioners. The findings contribute to a more comprehensive understanding of the complexities surrounding offshoring and its implications for the labor market.","PeriodicalId":47522,"journal":{"name":"JOURNAL OF ECONOMICS AND BUSINESS","volume":null,"pages":null},"PeriodicalIF":3.3000,"publicationDate":"2023-09-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"JOURNAL OF ECONOMICS AND BUSINESS","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.31014/aior.1992.06.03.528","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"BUSINESS, FINANCE","Score":null,"Total":0}
引用次数: 0
Abstract
The phenomenon of offshoring has become a prominent topic in contemporary economic discussions, closely tied to globalization and communication. Offshoring involves importing input items from foreign countries at a lower cost, enabling cost-effective production. However, it raises concerns among workers regarding job loss and wage reduction. The aspect of collective bargaining, crucial in understanding the dynamics of offshoring, has often been overlooked in previous research. This journal paper aims to address this research gap by examining the impact of collective bargaining on determining equilibrium wages in the context of offshoring. Through a comprehensive analysis of three cases—Autarky, Small Country, and a two-country scenario—we explore how fluctuations in offshoring costs influence employment levels and wage rates. Additionally, we investigate the policy implications of offshoring decisions in one country and their effects on its partner country. The study also considers the role of skill acquisition in the offshoring process and its multifaceted impact on the labor market. By shedding light on the influence of collective bargaining in determining equilibrium wages within the offshoring framework, this research provides valuable insights for policymakers, academics, and industry practitioners. The findings contribute to a more comprehensive understanding of the complexities surrounding offshoring and its implications for the labor market.
期刊介绍:
Journal of Economics and Business: Studies in Corporate and Financial Behavior. The Journal publishes high quality research papers in all fields of finance and in closely related fields of economics. The Journal is interested in both theoretical and applied research with an emphasis on topics in corporate finance, financial markets and institutions, and investments. Research in real estate, insurance, monetary theory and policy, and industrial organization is also welcomed. Papers that deal with the relation between the financial structure of firms and the industrial structure of the product market are especially encouraged.