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One of the most controversial topics in the news is the outsourcing of American jobs to other countries. Outsourced jobs have extended well beyond the manufacturing sector to include white-collar professionals, particularly in information technology, financial services, and customer service. Outsourcing America reveals just how much outsourcing is taking place, what its impact has been and will continue to be, and what can be done about the loss of jobs. More than an exposé, Outsourcing America shows how offshoring is part of the historical economic shift toward globalism and free trade, and demonstrates its impact on individual lives and communities. In addition, the book now features a new chapter on immigration policies and outsourcing, and advice on how individuals can avoid becoming victims of outsourcing. The authors discuss policies that countries like India and China use to attract U.S. industries, and they offer frank recommendations that business and political leaders must consider in order to confront this crisis—and bring more high-paying jobs back to the U.S.A.
Two leading economists discuss a range of issues relating to the “offshoring” of American jobs, from free trade to unemployment levels. It is no surprise that many fearful American workers see the call center operator in Bangalore or the factory worker in Guangzhou as a threat to their jobs. The emergence of China and India (along with other, smaller developing countries) as economic powers has doubled the supply of labor to the integrated world economy. Economic theory suggests that such a dramatic increase in the supply of labor without an accompanying increase in the supply of capital is likely to exert downward pressure on wages for workers already in the integrated world economy, and wages for most workers in the United States have indeed stagnated or declined. In this book, leading economists Jagdish Bhagwati and Alan S. Blinder offer their perspectives on how the outsourcing of labor and the shifting of jobs to lower-wage countries affect the U.S. economy and what, if any, policy responses are required. Bhagwati, in his colorful and pithy style, focuses on globalization and free trade, while Blinder, erudite and witty, addresses the significance of labor market adjustment caused by trade. Bhagwati's and Blinder's contributions are followed by comments from economists Richard Freedman, Douglas A. Irwin, Lori G. Kletzer, and Robert Z. Lawrence. Bhagwati and Blinder then respond separately to the issues raised. Benjamin Friedman, who edited this volume (and organized the symposium that inspired it), provides an introduction.
The global race for talent is on, with countries and businesses competing for the best and brightest. Talented individuals migrate much more frequently than the general population, and the United States has received exceptional inflows of human capital. This foreign talent has transformed U.S. science and engineering, reshaped the economy, and influenced society at large. But America is bogged down in thorny debates on immigration policy, and the world around the United States is rapidly catching up, especially China and India. The future is quite uncertain, and the global talent puzzle deserves close examination. To do this, William R. Kerr uniquely combines insights and lessons from business practice, government policy, and individual decision making. Examining popular ideas that have taken hold and synthesizing rigorous research across fields such as entrepreneurship and innovation, regional advantage, and economic policy, Kerr gives voice to data and ideas that should drive the next wave of policy and business practice. The Gift of Global Talent deftly transports readers from joyous celebrations at the Nobel Prize ceremony to angry airport protests against the Trump administration's travel ban. It explores why talented migration drives the knowledge economy, describes how universities and firms govern skilled admissions, explains the controversies of the H-1B visa used by firms like Google and Apple, and discusses the economic inequalities and superstar firms that global talent flows produce. The United States has been the steward of a global gift, and this book explains the huge leadership decision it now faces and how it can become even more competitive for attracting tomorrow's talent. Please visit www.hbs.edu/managing-the-future-of-work/research/Pages/default.aspx to learn more about the book.
This book is based on the 7th ILO Social Policy Lectures, which are endowed with the ILO's Nobel Peace Prize, held in Kingston, Jamaica in December 2005. In keeping with the topics covered in the lecture series, it uses the global value chains perspective to look at how offshore outsourcing has affected the quantity and quality of jobs in the global economy. While offering an overview of the contemporary global labour market, the book examines the issue of global consolidation and industrial upgrading and its promise and perils for development. It introduces an analytical framework for linking jobs in the industrial structures of both advanced and developing economies through the dynamics of global value chains. It reviews the strategies of leading firms global retailers, branded marketers, and brand-name manufacturers and considers the conceptualisation of jobs in the global economy not by their location in particular industries or countries, but by their role in global value chains.The author argues that, given the special features of global value chains, there is a need to reconsider the contemporary notions of global corporate social responsibility and private as well as public governance
Examines the formidable challenges facing the middle class, calling for fundamental changes while surveying the extent of the problem and identifying the people and agencies most responsible.
Offshoring - the transfer of an industrial activity abroad - is defined in detail and its effects examined.
In the twentieth century, large companies employing many workers formed the bedrock of the U.S. economy. Today, on the list of big business's priorities, sustaining the employer-worker relationship ranks far below building a devoted customer base and delivering value to investors. As David Weil's groundbreaking analysis shows, large corporations have shed their role as direct employers of the people responsible for their products, in favor of outsourcing work to small companies that compete fiercely with one another. The result has been declining wages, eroding benefits, inadequate health and safety protections, and ever-widening income inequality. From the perspectives of CEOs and investors, fissuring--splitting off functions that were once managed internally--has been phenomenally successful. Despite giving up direct control to subcontractors and franchises, these large companies have figured out how to maintain the quality of brand-name products and services, without the cost of maintaining an expensive workforce. But from the perspective of workers, this strategy has meant stagnation in wages and benefits and a lower standard of living. Weil proposes ways to modernize regulatory policies so that employers can meet their obligations to workers while allowing companies to keep the beneficial aspects of this business strategy.
Explores globalization, its opportunities for individual empowerment, its achievements at lifting millions out of poverty, and its drawbacks--environmental, social, and political.
An economic analysis of de-industrialization that considers the ongoing transformation of the industrial economies and the consequences for economic policy.