Template-Type: ReDIF-Paper 1.0
Title: Trade in Tasks and the Organization of Firms
Author-Name: Dalia Marin
Author-Email: dalia.marin@lmu.de
Author-Name: Jan Schymik
Author-Email: jschymik@mail.uni-mannheim.de
Author-Name: Alexander Tarasov
Author-Email: atarasov@hse.ru
Classification-JEL:  F12, F14, L22, D23
Keywords: international trade with endogenous organizations, the rise of human capital, theory of the firm, multinational firms, CEO pay

Abstract: In this paper, we incorporate trade in tasks into Marin and Verdier (2012) to
examine how offshoring affects the way firms organize. We show that offshoring of
production tasks and of managerial tasks can lead to more decentralized management and
to larger executive wages in open economies. We study the predictions of the model with
original firm level data and find that offshoring firms are 18% more decentralized than
non-offshoring firms. We also find that offshoring of managers increases the level of
decentralized management in open industries, but reduces the level of decentralized
management in sufficiently closed industries.

Note: 
Length: 51
Creation-Date: 2018-09
Revision-Date: 
File-URL: https://www.crctr224.de/research/discussion-papers/archive/dp035
File-Format: application/pdf
Handle: RePEc:bon:boncrc:CRCTR224_2018_035