Global Engagement, Complex Tasks and the Distribution of Occupational Employment. Issue 4 (9th June 2016)

• Record Type: Journal Article
• Authors: Davidson, Carl; Heyman, Fredrik; Matusz, Steven; Sjöholm, Fredrik; Chun Zhu, Susan
• Is Part Of: Review of international economics. Volume 24:Issue 4(2016:Sep.)
• Page Start: 717
• Page End: 736
• Publication Date: 2016-06-09
• Subjects: International economic relations -- Periodicals; International finance -- Periodicals; Economic policy -- Periodicals; 330
• DOI: 10.1111/roie.12235
• Languages: English
• ISSNs: 0965-7576

Abstract

Abstract: We construct a task‐based model of the firm's choice of occupational inputs to examine how that choice varies with greater global engagement. We assume that more complex tasks are more costly to complete. Within the structure of our model, firms skew employment toward occupations engaged in more complex tasks. Moreover, the distribution of employment is more skewed for more globalized firms, while it is less skewed for larger firms. These results are consistent with our previous empirical finding.