Labour Market Effects of International Fragmentation of Production; Evidence from a Survey and Case Studies in the Dutch Industry

In this era of globalisation the traditional Ricardian theory of trade in products governed by comparative advantages is replaced by a modern theory of trade in tasks. Tasks are outsourced to those places in the world where the lower production costs outweigh the additional transaction costs associated with coordinating the tasks. The labour market consequences of this outsourcing of tasks is a major concern, both for the country that outsources tasks and for the country to which tasks are outsourced. This paper discusses the labour market effects of outsourcing in the Netherlands using a surv... Mehr ...