Tradable Services: Understanding the Scope and Impact of Services Outsourcing
J. Jensen () and
Lori Kletzer ()
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Lori Kletzer: University of California, Santa Cruz
No WP05-9, Working Paper Series from Peterson Institute for International Economics
Abstract:
We develop a new empirical approach to identify tradable service activities. Contrary to conventional views of service activities as nontradable, we find a significant number of service industries and occupations that appear tradable and substantial employment in these tradable activities. Workers employed in tradable service activities differ from those employed in tradable manufacturing and nontradable services. Workers in tradable service activities have higher skill levels and are paid higher wages than manufacturing workers or workers in nontradable service activities. In general, we find little evidence that tradable service activities have lower employment growth than other service activities. However, evidence suggests lower employment growth at the lowest end of the skill distribution. There is also evidence of higher worker displacement rates in tradable services. Workers displaced from tradable service activities are different from displaced manufacturing workers: Displaced tradable service workers have higher skills and higher predisplacement earnings than displaced manufacturing workers.
Keywords: services; offshoring; trade; labor; information technology; jobs (search for similar items in EconPapers)
JEL-codes: F16 J44 R12 (search for similar items in EconPapers)
Date: 2005-09
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Citations: View citations in EconPapers (235)
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Persistent link: https://EconPapers.repec.org/RePEc:iie:wpaper:wp05-9
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