scholarly journals Offshoring and Labor Markets

2018 ◽  
Vol 56 (3) ◽  
pp. 981-1028 ◽  
Author(s):  
David Hummels ◽  
Jakob R. Munch ◽  
Chong Xiang
Keyword(s):  
Labor Markets ◽  
Policy Implications ◽  
Empirical Literature ◽  
Firm Level ◽  
Intermediate Inputs ◽  
Level Data ◽  
Wage Effects ◽  
Wage Employment ◽  
Firm Data ◽  
Industry Level Data

In this paper, we survey the recent empirical literature on the effects of offshoring on wage, employment, and displacement. We start with an overview of the measurement of offshoring, organizing our discussion around the three key elements of offshoring: that it involves intermediate inputs for production (versus final goods for consumption); that it involves imported inputs (versus domestically produced ones); and that the inputs involved could have been produced internally within the same firm. We then briefly discuss the theories of offshoring and survey the literature that examines the wage effects of offshoring: the wave of studies using industry-level data; the wave using firm-level data; the wave using worker-level data; and the wave using matched worker-firm data. For each wave, we highlight the identification strategies used, critically assess its strengths and weaknesses, discuss its connections with theory, and draw out potential policy implications of its findings. Finally, we survey the literature that examines how offshoring affects employment and displacement. We highlight the recent development of a novel cohort-based approach that is specifically designed to address selection with displacement, and capable of identifying the overall effects of offshoring, including wage, displacement, and all other types of transitions. (JEL F23, J24, J31, J63, L24, M55)

Anonymized Firm Data under Test: Evidence from a Replication Study

2005 ◽  
Vol 225 (5) ◽  
Author(s):  
Joachim Wagner
Keyword(s):  
Cross Sections ◽  
Statistical Significance ◽  
Original Data ◽  
Replication Study ◽  
Firm Level ◽  
Level Data ◽  
Practical Usefulness ◽  
Order Of Magnitude ◽  
Anonymized Data ◽  
Firm Data

SummaryThis paper contributes to the literature on the use of anonymized firm level data by reporting results from a replication study. To test for the practical usefulness of anonymized data I selected two of my published papers based on different cross sections of firm data. The data used there were anonymized by micro aggregation. I replicated the analyses reported in the papers with the anonymized data, and then compared the results to those produced with the original data. Frequently, the reported levels of statistical significance differ. Furthermore, statistically significant coefficients sometimes differ by order of magnitude. Therefore, at least for the moderate sample sizes used here micro-aggregated firm data should not be considered as a tool for empirical research.

scholarly journals Import Liberalization of Intermediates and Environment: Empirical Evidence from Chinese Manufacturing

2019 ◽  
Vol 11 (9) ◽  
pp. 2579 ◽  
Author(s):  
Ling-Yun He ◽  
Liang Wang
Keyword(s):  
Manufacturing Sector ◽  
Firm Level ◽  
Intermediate Inputs ◽  
Interaction Terms ◽  
Level Data ◽  
Plant Level ◽  
Pollution Emissions ◽  
The Impact ◽  
Scale Composition ◽  
Level Lowering

This paper investigates how the import liberalization of intermediates affects firm-level pollution emissions. We divide the impact of freer import of intermediates on pollution emissions into induced scale, composition and technique effects and then develop interaction terms to examine these effects. Relying on a panel of plant-level data from China manufacturing sector for the period 2001 to 2007, we find freer import of intermediate inputs is conducive to pollution reductions at the plant level, lowering pollution via induced technique and composition effects and, in turn, increasing emission through induced scale effect. In summary, import liberalization of intermediate inputs can contribute to the better environmental performance of China manufacturing sector.

scholarly journals From Micro to Macro: A Note on the Analysis of Aggregate Productivity Dynamics Using Firm-Level Data

2021 ◽  
Vol 2021 (1314) ◽  
pp. 1-36
Author(s):  
Daniel A. Dias ◽  
◽  
Carlos Robalo Marques ◽  
Keyword(s):  
Labor Productivity ◽  
Productivity Growth ◽  
Empirical Literature ◽  
Aggregate Productivity ◽  
Firm Level ◽  
Level Data ◽  
Firm Level Data ◽  
The Mean ◽  
Productivity Dynamics

In the empirical literature, the analysis of aggregate productivity dynamics using firm-level productivity has mostly been based on changes in the mean of log-productivity. This paper shows that there can be substantial quantitative and qualitative differences in the results relative to when the analysis is based on changes in the mean of productivity, and discusses the circumstances under which such differences are likely to happen. We use firm-level data for Portugal for the period 2006-2015 to illustrate the point. When the mean of productivity is used, we estimate that TFP and labor productivity for the whole economy increased by 17.7 percent and 5.2 percent, respectively, over this period. But, when the mean of log-productivity is used, we estimate that these two productivity measures declined by 4.3 percent and 1.8 percent, respectively. Similarly disparate results are obtained for productivity decompositions regarding the contributions for productivity growth of surviving, entering and exiting firms.

How does the globalization of firms affect corruption in developing economies?

2017 ◽  
Vol 21 (3) ◽  
pp. 256-270 ◽  
Author(s):  
Bokyeong Park ◽  
Onon Khanoi
Keyword(s):  
Foreign Investment ◽  
Developing Economies ◽  
Probit Model ◽  
Policy Implications ◽  
Firm Level ◽  
Content Type ◽  
Exporting Firms ◽  
Country Level ◽  
Level Data ◽  
Firm Level Data

Purpose The purpose of this paper is to examine how firms’ characteristics related to globalization affect their perception on corruption and actual experiences in bribery. It focuses on two indicators of globalization, namely, foreign ownership and export, and confines the scope to developing economies. Design/methodology/approach This analysis uses firm-level data with observation over 60,000 collected from 94 developing economies. The paper employs the probit model to examine how firm characteristics related to globalization affect corruption perception (CP) and incidence. Findings The empirical results reveal that for foreign-invested companies, there is a substantial discrepancy between the perceived corruption and the actual. Although they are involved in bribery as frequently as, or less frequently than local firms, they have greater CPs. Exporting firms are more frequently solicited for bribes, but the effect disappears when time spent for government contact is controlled for. Consequently, foreign investment partly contributes to the corruption control, but the export orientation of firms rather aggravates corruption due to regulative environments in developing economies. Practical implications This study provides policy implications that the corruption control through globalization requires streamlining of administration procedure related to foreign investment or trade and, thus, shortening time to deal with public officials. In addition, governments need to emphasize the importance of foreign investment and prevent unethical practices mediated by local partners. Originality/value The greatest novelty of this paper lies in using firm level data instead of country level unlike most of the literature. Moreover, the authors focus on firms only in developing economies. As well, unlike most studies using only perception indicators as the proxy of corruption, this paper considers both CPs and actual incidence, and compares each other.

The World KLEMS Initiative

2018 ◽  
pp. 662-698 ◽  
Author(s):  
Dale W. Jorgenson
Keyword(s):  
United States ◽  
Economic Growth ◽  
The United States ◽  
Intermediate Inputs ◽  
Industry Level ◽  
Level Data ◽  
The World ◽  
Industry Level Data ◽  
Purchasing Power Parities ◽  
Productivity Gap

The World KLEMS Initiative generates industry-level data on outputs, inputs, and productivity. Productivity is output per unit of all inputs. The inputs consist of the primary factors of production—capital (K) and labor (L)—and the intermediate inputs: energy (E), materials (M), and services (S). Industry-level data are indispensable for analyzing the sources of economic growth. Productivity gaps between two countries are defined in terms of differences in productivity levels. These differences are measured by linking productivity levels for each country by purchasing power parities for outputs and inputs. The large productivity gap between the United States and Japan in 1955 gradually closed until 1995. Since then, Japanese productivity has been stagnant, while US productivity has continued to grow. The widening productivity gap can be traced to a small number of sectors, mainly in trade and services.

From the Fringe to the Fore: Labor Unions and Employee Compensation

2020 ◽  
Vol 102 (1) ◽  
pp. 98-112 ◽  
Author(s):  
Matthew Knepper
Keyword(s):  
Labor Unions ◽  
Multinational Enterprise ◽  
Empirical Literature ◽  
Employee Compensation ◽  
Firm Level ◽  
Apparent Contradiction ◽  
Labor Share ◽  
Level Data ◽  
Union Election ◽  
Enterprise Survey

Conventional wisdom suggests that labor unions raise worker wages, while the newer empirical literature finds only negligible earnings effects. I reconcile this apparent contradiction by arguing that collective bargaining targets fringe benefits. Using U.S. firm-level data from the Bureau of Economic Analysis (BEA) Multinational Enterprise Survey and Compustat, I exploit a regression discontinuity in majority rule union elections to compare changes in employee compensation at firms whose establishment barely won a union election against those that barely lost an election. Following unionization, average employee compensation and employer pension contributions increase, which raises the labor share of compensation.

scholarly journals Pollution Havens and Foreign Direct Investment: Dirty Secret or Popular Myth?

2003 ◽  
Vol 3 (2) ◽  
Author(s):  
Beata Smarzynska Javorcik ◽  
Shang-Jin Wei
Keyword(s):  
Soviet Union ◽  
Host Country ◽  
Former Soviet Union ◽  
Multinational Firms ◽  
Environmental Standards ◽  
Pollution Haven Hypothesis ◽  
Firm Level ◽  
Pollution Haven ◽  
Level Data ◽  
Industry Level Data

Abstract The “pollution haven” hypothesis refers to the possibility that multinational firms, particularly those engaged in highly polluting activities, relocate to countries with weaker environmental standards. Despite the plausibility and popularity of this hypothesis, the existing literature has found only limited evidence to support it. To enhance our ability to detect the possible “dirty secret,” this study makes improvements in four areas. First, we focus on investment flows from multiple countries to 25 economies in Eastern Europe and the former Soviet Union. Transition countries are a suitable region for studying this question, as they offer a large variation in terms of environmental standards. Second, we take into explicit account the effect of host country corruption. Third, we include information on both the polluting-intensity of the potential investor and the environmental stringency in the potential host country, which allows us to test whether dirty industries are relatively more attracted to locations with weak standards. And fourth, we rely on firm-level rather than industry-level data. Despite these improvements, we find no support for the “pollution haven” hypothesis. If anything, firms in less polluting industries are more likely to invest in the region. We find no systematic evidence that FDI from “dirtier” industries is more likely to go to countries with weak environmental regulations.

scholarly journals Moving on from New Zealand’s productivity paradox

2018 ◽  
Vol 14 (3) ◽  
Author(s):  
Patrick Nolan ◽  
Huon Fraser ◽  
Paul Conway
Keyword(s):  
New Zealand ◽  
Linked Data ◽  
Recent Progress ◽  
Data Sets ◽  
Firm Level ◽  
Productivity Paradox ◽  
Industry Level ◽  
Level Data ◽  
High Level ◽  
Industry Level Data

For many years New Zealand’s productivity performance has been disappointing. The authors outline recent progress in understanding what could be driving this performance. They draw on Statistics New Zealand industry-level data, before summarising insights from firm-level research using linked data sets (the Longitudinal Business Database (LBD)). They conclude with a high-level summary of directions of reform that could help improve New Zealand’s productivity performance.

scholarly journals Levels of structural change

2021 ◽  
Author(s):  
Torsten Heinrich ◽  
Jangho Yang ◽  
Shuanping Dai
Keyword(s):  
Structural Change ◽  
Robust Regression ◽  
Evolutionary Economics ◽  
Policy Implications ◽  
Firm Level ◽  
Level Data ◽  
Empirical Regularities ◽  
Heavy Tailed ◽  
Input Variables ◽  
Technology Level

AbstractWe investigate structural change in the PR China during a period of particularly rapid growth 1998-2014. For this, we utilize sectoral data from the World Input-Output Database and firm-level data from the Chinese Industrial Enterprise Database. Starting with correlation laws known from the literature (Fabricant’s laws), we investigate which empirical regularities hold at the sectoral level and show that many of these correlations cannot be recovered at the firm level. For a more detailed analysis, we propose a multi-level framework, which is validated empirically. For this, we perform a robust regression, since various input variables at the firm-level as well as the residuals of exploratory OLS regressions are found to be heavy-tailed. We conclude that Fabricant’s laws and other regularities are primarily characteristics of the sectoral level which rely on aspects like infrastructure, technology level, innovation capabilities, and the knowledge base of the relevant labor force. We illustrate our analysis by showing the development of some of the larger sectors in detail and offer some policy implications in the context of development economics, evolutionary economics, and industrial organization.

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