Global Engagement, Complex Tasks and the Distribution of Occupational Employment

20 Pages Posted: 4 Aug 2016

See all articles by Carl Davidson

Carl Davidson

Michigan State University - Department of Economics

Fredrik Heyman

Research Institute of Industrial Economics (IFN)

Steven J. Matusz

Michigan State University - Department of Economics

Fredrik Sjöholm

Lund University School of Economics and Management; Research Institute of Industrial Economics (IFN)

Susan Chun Zhu

Michigan State University - Department of Economics

Date Written: September 2016

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.

Suggested Citation

Davidson, Carl and Heyman, Fredrik and Matusz, Steven J. and Sjöholm, Fredrik and Chun Zhu, Susan, Global Engagement, Complex Tasks and the Distribution of Occupational Employment (September 2016). Review of International Economics, Vol. 24, Issue 4, pp. 717-736, 2016. Available at SSRN: https://ssrn.com/abstract=2818097 or http://dx.doi.org/10.1111/roie.12235

Carl Davidson (Contact Author)

Michigan State University - Department of Economics ( email )

25 C Marshall-Adams Hall
East Lansing, MI 48824
United States
517-355-7756 (Phone)
517-432-1068 (Fax)

HOME PAGE: http://www.msu.edu/~ec/faculty/davidson/davidson.html

Fredrik Heyman

Research Institute of Industrial Economics (IFN) ( email )

Box 55665
Grevgatan 34, 2nd floor
Stockholm, SE-102 15
Sweden

HOME PAGE: http://www.ifn.se

Steven J. Matusz

Michigan State University - Department of Economics ( email )

Department of Economics
486 West Circle Drive
East Lansing, MI 48824
United States
517-353-8719 (Phone)
517-432-1068 (Fax)

HOME PAGE: http://econ.msu.edu/faculty/matusz/index.php

Fredrik Sjöholm

Lund University School of Economics and Management ( email )

P.O Box 7080
Lund
Sweden

Research Institute of Industrial Economics (IFN) ( email )

Box 55665
Grevgatan 34, 2nd floor
Stockholm, SE-102 15
Sweden

Susan Chun Zhu

Michigan State University - Department of Economics ( email )

214 Marshall Hall
East Lansing, MI 48824
United States
517-355-9647 (Phone)
517-432-1068 (Fax)

HOME PAGE: http://www.msu.edu/~ec/faculty/zhu/zhu.html

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