Offshoring and directed technical change

To study the short-run and long-run implications on wage inequality, we introducedirected technical change into a Ricardian model of offshoring. A unique final good isproduced by combining a skilled and an unskilled product, each produced from a continuumof intermediates (tasks). Some of these tasks can be transferred from a skill-abundant Westto a skill-scarce East. Profit maximization determines both the extent of offshoring andtechnological progress. Offshoring induces skill-biased technical change because it increasesthe relative price of skill-intensive products and induces technical change favoring unskilledworkers because it expands the market size for technologies complementing unskilled labor.In the empirically more relevant case, starting from low levels, an increase in offshoringopportunities triggers a transition with falling real wages for unskilled workers in the West,skill-biased technical change and rising skill premia worldwide. However, when the extentof offshoring becomes sufficiently large, further increases in offshoring induce technicalchange now biased in favor of unskilled labor because offshoring closes the gap betweenunskilled wages in the West and the East, thus limiting the power of the price effectfueling skill-biased technical change. The unequalizing impact of offshoring is thus greatestat the beginning. Transitional dynamics reveal that offshoring and technical change aresubstitutes in the short run but complements in the long run. Finally, though offshoringimproves the welfare of workers in the East, it may benefit or harm unskilled workers inthe West depending on elasticities and the equilibrium growth rate.

Faire entendre sa voix

Dans une société du consentement, chacun devrait pouvoir exprimer sa voix. Mais tout enfant apprend à parler en faisant usage de la parole des autres. Dans quelle mesure ce que dit le nouveau venu n'est-il pas une pure reproduction de ce que disent ses aînés ? Si chacun a la voix de sa communauté, qu'est-ce que peut bien vouloir dire « liberté d'expression » ? J'aimerais montrer qu'une voix n'est pas quelque chose que l'on a, mais quelque chose que l'on fait entendre au cours d'un apprentissage. Le problème est politique : ma voix est liée à ma place dans une communauté. In a society of consent, each and everyone should express their own voice. However, a child learns how to speak using the words of the others. To which extent the newcomer isn't just reproducing what his elders say ? If everyone speaks through their community's voice, what does « freedom of speech » mean ? I want to demonstrate that a voice isn't something that one has, it's something that one acquires through education. This is a political problem : my voice is linked to my place in a community.