American Economic Review: Vol. 103 No. 5 (August 2013)


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Immigration, Offshoring, and American Jobs

Article Citation

Ottaviano, Gianmarco I. P., Giovanni Peri, and Greg C. Wright. 2013. "Immigration, Offshoring, and American Jobs." American Economic Review, 103(5): 1925-59.

DOI: 10.1257/aer.103.5.1925


Following Grossman and Rossi-Hansberg (2008) we present a model in which tasks of varying complexity are matched to workers of varying skill in order to develop and test predictions regarding the effects of immigration and offshoring on US native-born workers. We find that immigrant and native-born workers do not compete much due to the fact that they tend to perform tasks at opposite ends of the task complexity spectrum, with offshore workers performing the tasks in the middle. An effect of offshoring and a positive effect of immigration on native-born employment suggest that immigration and offshoring improve industry efficiency.

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Ottaviano, Gianmarco I. P. (London School of Economics and Political Science and Bocconi U)
Peri, Giovanni (U CA, Davis)
Wright, Greg C. (U Essex)

JEL Classifications

J24: Human Capital; Skills; Occupational Choice; Labor Productivity
J41: Labor Contracts
J61: Geographic Labor Mobility; Immigrant Workers
L24: Contracting Out; Joint Ventures; Technology Licensing

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