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dc.contributor.author	Rossi-Hansberg, Esteban
dc.contributor.author	Garicano, Luis
dc.contributor.author	Antras, Pol
dc.date.accessioned	2009-07-21T20:07:58Z
dc.date.issued	2006
dc.identifier.citation	Antras, Pol, Luis Garicano, and Esteban Rossi-Hansberg. 2006. Offshoring in a knowledge economy. Quarterly Journal of Economics 121(1): 31-77.	en
dc.identifier.issn	1531-4650	en
dc.identifier.issn	0033-5533	en
dc.identifier.uri	http://nrs.harvard.edu/urn-3:HUL.InstRepos:3196323
dc.description.abstract	How does the formation of cross-country teams affect the organization of work and the structure of wages? To study this question, we propose a theory of the assignment of heterogeneous agents into hierarchical teams, where less skilled agents specialize in production and more skilled agents specialize in problem solving. We first analyze the properties of the competitive equilibrium of the model in a closed economy, and show that the model has a unique and efficient solution. We then study the equilibrium of a two-country model (North and South), where countries differ in their distributions of ability, and in which agents in different countries can join together in teams. We refer to this type of integration as globalization. Globalization leads to better matches for all southern workers but only for the best northern workers. As a result, we show that globalization increases wage inequality among nonmanagers in the South, but not necessarily in the North. We also study how globalization affects the size distribution of firms and the patterns of consumption and trade in the global economy.	en
dc.description.sponsorship	Economics	en
dc.language.iso	en_US	en
dc.publisher	MIT Press	en
dc.relation.isversionof	http://dx.doi.org/10.1162/qjec.2006.121.1.31	en
dash.license	LAA
dc.title	Offshoring in a Knowledge Economy	en
dc.type	Journal Article
dc.description.version	Version of Record
dc.relation.journal	Quarterly Journal of Economics	en
dash.depositing.author	Antras, Pol

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