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On the measurability of offshorability (25% of US jobs can be outsourced)
Vox Eu ^ | 10/09/09 | Alan S. Blinder

Posted on 10/13/2009 5:50:02 AM PDT by TigerLikesRooster

On the measurability of offshorability

Alan S. Blinder

9 October 2009

Fear of offshoring may force its way back onto policy agendas soon. This column uses a survey of individual workers to measure the offshorability of particular jobs and says that about 25% of US jobs are offshorable. Surprisingly, routine tasks are not more offshorable but those held by more educated workers are.

Although overshadowed by the financial crisis and the world recession right now, the debate over offshoring – that is, outsourcing work to foreign (often poorer) countries – seems poised to stage a comeback as a public policy concern in the not-too-distant future. Indeed, with so much protectionist talk and some protectionist action in the air, fear of offshoring may force its way back onto the policy agendas of the US and other rich countries sooner than we think.

It seems axiomatic that both the economically appropriate and the politically feasible policy responses to offshoring should differ depending on whether the share of the workforce holding offshorable jobs is, say, 2%, 25%, or 75%. In the 2% case, we should probably ignore offshoring as a detail of little consequence. In the 75% case, we should perhaps be seeking radical solutions to the manifold problems caused by massive job dislocations. But if a number nearer to 25% is more plausible, as argued here, the situation probably calls for certain marginal (and some not so marginal) policy adjustments – but certainly not panic. Thus it seems important to obtain a rough empirical handle on this number, slippery though the concept of offshorability may be.1

(Excerpt) Read more at voxeu.org ...


TOPICS: Business/Economy; Front Page News; News/Current Events
KEYWORDS: jobs; offshorability; oursourcing
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1 posted on 10/13/2009 5:50:03 AM PDT by TigerLikesRooster
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To: TigerLikesRooster; PAR35; AndyJackson; Thane_Banquo; nicksaunt; MadLibDisease; happygrl; ...

Ping!


2 posted on 10/13/2009 5:50:46 AM PDT by TigerLikesRooster (LUV DIC -- L,U,V-shaped recession, Depression, Inflation, Collapse)
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To: TigerLikesRooster

Legal services (back room stuff done by lawyers and paralegals) being done offshore is booming.


3 posted on 10/13/2009 5:52:10 AM PDT by ikka (Brother, you asked for it!)
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To: TigerLikesRooster

Who deserves outsourcing more? Unionized auto workers, or free-marketer Wall Streeters?


4 posted on 10/13/2009 5:52:39 AM PDT by worst-case scenario (Striving to reach the light)
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To: TigerLikesRooster

That’s O.K., soon the jobs will be outsourced to us.....


5 posted on 10/13/2009 5:53:00 AM PDT by marstegreg
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To: ikka
That means some folks in India can know all about messy divorce details of Americans.
6 posted on 10/13/2009 5:53:41 AM PDT by TigerLikesRooster (LUV DIC -- L,U,V-shaped recession, Depression, Inflation, Collapse)
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To: worst-case scenario

Both have a whole range of other jobs attatched to theirs that would be lost.


7 posted on 10/13/2009 5:55:15 AM PDT by cripplecreek (Seniors, the new shovel ready project under socialized medicine.)
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To: TigerLikesRooster

Actually I know someone working for a large legal services outsourcing firm in the Philippines. They are growing like crazy.


8 posted on 10/13/2009 6:03:40 AM PDT by ikka (Brother, you asked for it!)
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To: TigerLikesRooster

I cannot wait until the MSM is outsourced.


9 posted on 10/13/2009 6:06:00 AM PDT by Le Chien Rouge
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To: TigerLikesRooster

Whatever isn’t outsourced will be done by illegals.


10 posted on 10/13/2009 6:09:11 AM PDT by pnh102 (Regarding liberalism, always attribute to malice what you think can be explained by stupidity. - Me)
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To: ikka

Most physician jobs that do not require hands-on patient contact (Radiology, Pathology) can be and are remotely sourced. Those x-rays you get at your doctor’s office or urgent care center are interpreted miles away by a Radiologist sitting in a reading center.

The Pap smear your wife received during her last checkup is probably interpreted in Singapore.

Most medical transcription is done remotely via broadband connections to India.


11 posted on 10/13/2009 6:10:22 AM PDT by CholeraJoe (Member of AARP - Armed And Really Pi$$ED!)
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To: marstegreg

Not if the environazis remain in power along with the unions. There is more to overhead costs than wages.


12 posted on 10/13/2009 6:11:00 AM PDT by kabar
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To: TigerLikesRooster
The law of diminishing returns will eventually kick in when the idiots realize that if you export all the jobs, then no one here will be able to afford the 'imports' they make overseas.

Atlas is coming....
13 posted on 10/13/2009 6:11:18 AM PDT by FrankR (To Congress: You cram it down our throats in '09, We'll shove it up your ass in '10!)
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To: pnh102
Whatever isn’t outsourced will be done by illegals.

Or an alphabet soup of guest workers.

While over 15,000,000 Americans are out of work, we are still importing 125,000 LEGAL workers per month. Many of whom pay no or minimal taxes / or take more out of the system than they pay in.


14 posted on 10/13/2009 6:16:48 AM PDT by algernonpj (He who pays the piper . . .)
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To: TigerLikesRooster

Out sourcing is their way, the lovers of socialism have destroyed us and are stealing the last of America’s wealth and liberties.
This is the cost of not believing the God of Israel’s testimony of His Son Jesus Christ, our Lord and Saviour.
“Blessed is the nation whose God is the Lord but sin is a reproach to any people”.
The chicken have come home to roost.


15 posted on 10/13/2009 6:19:50 AM PDT by kindred (Facts are a stubborn thing, but people are even more stubborn and will deny facts.)
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To: kindred
Out sourcing is their way, the lovers of socialism have destroyed us and are stealing the last of America’s wealth and liberties.

Bingo! You got it.

Add to that globalism (socialism in a business suit), "free Trade", political correctness, enviro-radicalism.
16 posted on 10/13/2009 6:24:25 AM PDT by algernonpj (He who pays the piper . . .)
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To: TigerLikesRooster
In the internet age, a lot of jobs turn out to be manipulating knowledge, and those functions can often be performed anywhere a sufficient connection can be found. This means that the people can be located where it becomes economically advantageous to the shareholders.

Those who think this is not “patriotic” never stop to consider how those who start companies are really being imposed upon and taken advantage of by a parasitic government that is a good dozen times larger than its LIMITED AND ENUMERATED POWERS would otherwise indicate it should be.

I am working on a startup that will employ a number of people. At this stage it is almost as easy to configure the company to use non-US workers as US workers. The more burdensome the US tax and regulatory regime becomes, the easier it becomes to locate elsewhere. That's the facts, Jack.

17 posted on 10/13/2009 6:29:29 AM PDT by theBuckwheat
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To: TigerLikesRooster

One of the most easily offshoreable jobs is that of college economics professors. Just establish a TV hookup to qualified economics grads in India or China and cut that salary cost by about 75% or more.

If there is one cost that needs to be controlled these days, it’s the cost of college tuition.

Actually, all sorts of teaching jobs could be offshored, but econ professors should really just step forward and insist that their jobs be offshored to hold true to their free market, comparative advantage notions.

Offshoreable? What a damned word.


18 posted on 10/13/2009 6:33:11 AM PDT by Will88
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To: TigerLikesRooster

Why so many otherwise gung-ho, America loving patriotic conservatives see absolutely nothing wrong with destroying Americans jobs, is beyond comprehension.

Duncan Hunter was interviewed Friday on a radio show - there was a thread about it yesterday.

He gets it. Why don’t more here? ANYTHING which weakens America, is a bad thing.

Eliminating US jobs certainly weakens America.

Worst: it also strengthens the Democrat party.


19 posted on 10/13/2009 6:36:36 AM PDT by Cringing Negativism Network (2012: Repeal it all... All of it!)
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To: TigerLikesRooster

Since the money from “We the People” was taken from us and given to General Motors is it not great to know that many of their cars are made in Mexico?


20 posted on 10/13/2009 6:47:42 AM PDT by YOUGOTIT (I will always be a Soldier)
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