NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH
loading...

The Labor Market Effects of Offshoring by U.S. Multinational Firms

Brian K. Kovak, Lindsay Oldenski, Nicholas Sly

NBER Working Paper No. 23947
Issued in October 2017, Revised in October 2019
NBER Program(s):International Trade and Investment Program, Labor Studies Program

We use firm-level data on U.S. multinationals to show how offshoring affects domestic employment within and across firms. We introduce a new instrument for offshoring: Bilateral Tax Treaties, which reduce the cost of offshore activities. We find substantial heterogeneity in effects. A 10 percent increase in affiliate employment drives a 1.3 percent increase in employment at the U.S. parent firm, with smaller effects at the industry and regional levels. In contrast, offshoring by vertical multinationals drives declining employment among non-multinationals in the same industry, and firms opening new affiliates exhibit smaller domestic employment growth than those expanding existing affiliates.

download in pdf format
   (715 K)

email paper

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w23947

Users who downloaded this paper also downloaded* these:
Hansman, Hjort, León, and Teachout w23949 Vertical Integration, Supplier Behavior, and Quality Upgrading among Exporters
Beattie, Durante, Knight, and Sen w23940 Advertising Spending and Media Bias: Evidence from News Coverage of Car Safety Recalls
Liao, Wang, Wang, and Yip w23939 Educational Choice, Rural-urban Migration and Economic Development
Aghion, Jones, and Jones w23928 Artificial Intelligence and Economic Growth
Pellegrino and Zingales w23964 Diagnosing the Italian Disease
 
Publications
Activities
Meetings
NBER Videos
Themes
Data
People
About

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

Contact Us