NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

The Politics and Economics of Offshore Outsourcing

N. Gregory Mankiw, Phillip Swagel

NBER Working Paper No. 12398
Issued in July 2006
NBER Program(s):   EFG   ITI   POL

This paper reviews the political uproar over offshore outsourcing connected with the release of the Economic Report of the President (ERP) in February 2004, examines the differing ways in which economists and non-economists talk about offshore outsourcing, and assesses the empirical evidence on the importance of offshore outsourcing in accounting for the weak labor market from 2001 to 2004. Even with important gaps in the data, the empirical literature is able to conclude that offshore outsourcing is unlikely to have accounted for a meaningful part of the job losses in the recent downturn or contributed much to the slow labor market rebound. The empirical evidence to date, while still tentative, actually suggests that increased employment in the overseas affiliates of U.S. multinationals is associated with more employment in the U.S. parent rather than less.

download in pdf format
   (238 K)

email paper

This paper is available as PDF (238 K) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w12398

Published: Gregory Mankiw, N. & Swagel, Phillip, 2006. "The politics and economics of offshore outsourcing," Journal of Monetary Economics, Elsevier, vol. 53(5), pages 1027-1056, July.

Users who downloaded this paper also downloaded these:
Grossman and Helpman w8728 Outsourcing in a Global Economy
Rogoff w7265 International Institutions for Reducing Global Financial Instability
Obstfeld w6559 The Global Capital Market: Benefactor or Menace?
Holmes and Thornton Snider w14856 A Theory of Outsourcing and Wage Decline
Cohen, Nelson, and Walsh w7552 Protecting Their Intellectual Assets: Appropriability Conditions and Why U.S. Manufacturing Firms Patent (or Not)
 
Publications
Activities
Meetings
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us