Outsourcing, offshoring and productivity measurement in United States manufacturing

Susan N. Houseman

52 citations0/0 files storedInternational Labour Review

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Global trade and economics Labor market dynamics and wage inequality Economic Growth and Productivity

Abstract

Abstract: Productivity growth in a sector or economy is the economic basis for improvements in workers' wages. Recent growth of domestic and foreign outsourcing in developed economies greatly complicates the measurement and interpretation of this key economic indicator and may result in inflated and misleading increases in productivity statistics. In the context of United States manufacturing, this article points to several pieces of evidence that suggest these effects of outsourcing and offshoring on productivity measures are significant. These factors may help explain why wage growth for most United States workers has been relatively low in spite of high measured productivity growth.

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References

2000The Resurgence of Growth in the Late 1990s: Is Information Technology the Story?2004Where Ricardo and Mill Rebut and Confirm Arguments of Mainstream Economists Supporting Globalization 1997The Growth of Temporary Services Work 2004Low-wage America: how employers are reshaping opportunity in the workplace 2006Service Offshoring and Productivity: Evidence from the United States 2006Productivity Impacts of Offshoring and Outsourcing 2005Where Did the Productivity Growth Go? Inflation Dynamics and the Distribution of Income 2005INTERNATIONAL OUTSOURCING AND THE PRODUCTIVITY OF LOW‐SKILLED LABOR IN THE EU

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2018Measuring the Gig Economy: Current Knowledge and Open Issues 2020Regional income disparities, monopoly and finance 2016Profit growth in boom and bust: the Great Recession and the Great Depression in comparative perspective 2014Productivity, outsourcing and exit: the case of Australian manufacturing 2015Sourcing Substitution and Related Price Index Biases

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