Did capital replace labor? New evidence from offshoring
- 주제(키워드) job polarization , labor income share , morishima elasticity of substitution , offshoring , technological changes
- 주제(기타) Economics
- 설명문(일반) [Choi, Paul Moon Sub] Ewha Womans Univ, Coll Business Adm, 52 Ewhayeodae Gil, Seoul 03760, South Korea; [Kim, Kee Beom] Int Labor Org, 4 Route Morillons, CH-1211 Geneva 22, Switzerland; [Seo, Jinyoung] Univ Calif Davis, Dept Econ, 1118 Social Sci & Humanities, Davis, CA 95616 USA
- 등재 SSCI, SCOPUS
- 발행기관 WALTER DE GRUYTER GMBH
- 발행년도 2019
- URI http://www.dcollection.net/handler/ewha/000000160188
- 본문언어 영어
- Published As http://dx.doi.org/10.1515/bejm-2018-0079
초록/요약
Neoclassical theory explains the global decline of the labor income share by capital-labor substitution due to the affordable relative price of capital. Based on the Morishima elasticities of substitution among capital, labor disaggregated into high-, medium-, and low-skill groups, and imported and domestic intermediate inputs, offshoring appears to disproportionately affect job polarization globally and in developed economies. These findings in favor of the globalization hypothesis are buttressed by multivariate panel regressions. Lastly, off-shoring might reinforce technological changes, a double-edged sword that can boost productivity growth but exacerbate wage inequality.
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