Author(s)

Joann Peterson


Abstract

The U.S. International Trade Commission (Commission or USITC) hosted its second labor roundtable on March 29, 2017. The roundtable facilitated an exchange of ideas among 30 participants representing academic institutions, government agencies, industry associations, international organizations, think tanks, and nonprofit organizations. This year’s event focused on the role that trade plays in U.S. labor markets and mechanisms, with the aim of assessing the connection between trade and labor. Within this framework, participants discussed three broad topics: the influence of trade and technology on the U.S. labor market; worker displacement and the efficacy of worker retraining programs (including the Trade Adjustment Assistance [TAA] program); and the impact of labor provisions in trade agreements on U.S. and global labor standards.


Author(s)

Andre Barbe, David Riker


Abstract

Recent economic literature views offshoring through the lens of a “trade in tasks” framework. Sources have used this framework to examine four main issues related to offshoring: (1) the relative price, productivity, and net effect of offshoring; (2) the different effects of offshoring for high- and low-skilled workers; (3) the different types of offshoring; and (4) the relative importance of offshoring and technological change. Studies tend to find that low-skill workers are harmed by offshoring, while high-skill workers benefit. Similarly, different types of offshoring have either positive or negative impacts on employment in the home country. As a result of this heterogeneity, when discussing offshoring, economists should be clear about the effects and type of offshoring which they are discussing.