Offshoring and working hours adjustments in a within-firm labor market

Research output: Contribution to journalArticlepeer-review

1 Citation (Scopus)

Abstract

Although a growing body of literature identifies the within-firm redistribution effects of trade, research on the adjustment processes in within-firm labor markets remains scarce. This study analyzes the within-firm adjustment of working hours and wages by considering workers’ educational background and gender in response to a change in offshoring. Matched worker–firm panel data in the Japanese manufacturing sector covering 1998 to 2014 are used. The analysis leads to the following three observations. First, offshoring does not significantly alter the skill premium and gender gap in terms of scheduled monthly salaries and scheduled hourly wages. Second, offshoring decreases skill premium in annual hourly wages, whereas it increases gender gap in annual salaries. Third, this uneven impact on annual variables arises from the different changes in overtime working hours: college graduates work longer with a lower overtime premium, whereas female workers do not increase overtime work.

Original languageEnglish
Article number101132
JournalJournal of The Japanese and International Economies
Volume60
DOIs
Publication statusPublished - 2021 Jun

Keywords

  • Offshoring
  • Overtime
  • Salary
  • Wage
  • Working hours

ASJC Scopus subject areas

  • Finance
  • Economics and Econometrics
  • Political Science and International Relations

Fingerprint

Dive into the research topics of 'Offshoring and working hours adjustments in a within-firm labor market'. Together they form a unique fingerprint.

Cite this