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12:30 - 13:45 20 March 2017

Offshoring, Biased Technical Change and Labour Demand: New Evidence from Global Value Chains


IFS Seminar room | Conference entrance (link Map)
7 Ridgmount Street | London | WC1E 7AE | United Kingdom

Open to: Academic | Student
Admission: Free
Ticketing: Open

Speaker information

Marcel Timmer, Groningen

Until now, it has not been possible to identify factor bias in technical change in the presence of offshoring. We present a novel approach to measure such biases in global value chains. In this approach, final output is mapped to labor and capital employed at any stage of production, in any country. We analyze changes in factor cost shares and find robust evidence of a bias in favor of college-educated workers and capital, and against non-college educated workers. Simulations suggest that offshoring and biased technical change contribute equally to the decline in employment of non-college educated workers in advanced countries.


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