Matsuoka, Yuji and Fukushima, Marcelo (2009): Time Zones, Shift Working and Outsourcing through Communications Networks.
Download (83kB) | Preview
We build a trade model with two countries located in different time zones, a monopolistically competitive sector in which production requires differentiated goods produced using day and night labor, and shift working disutility. Consumers choose between working at a day shift or a night shift and firms may choose to “virtually” outsource foreign day time labor by using communications services. We found that the higher the disutility of working at night is, the smaller is the number of varieties produced. Trade is beneficial only under certain concavity and cost conditions. The higher the disutility of working at night, the larger can be the gains from trade.
|Item Type:||MPRA Paper|
|Original Title:||Time Zones, Shift Working and Outsourcing through Communications Networks.|
|Keywords:||Communications networks, shift work, time zones, outsourcing|
|Subjects:||J - Labor and Demographic Economics > J3 - Wages, Compensation, and Labor Costs
F - International Economics > F1 - Trade
|Depositing User:||Yuji Matsuoka|
|Date Deposited:||12. Feb 2009 05:27|
|Last Modified:||12. Feb 2013 10:05|
Dixit, Avinash. K., and Stiglitz, Joseph. E.(1977) “Monopolistic Competition and Optimum Product Diversity”, American Economic Review 67, 297-308.
Eels, Francis R. (1956) “The Economics of Shift Working”, The Journal of Industrial Economics5, 51-62.
Ethier, Wilfred J. (1979) “Internationally Decreasing Costs and World Trade”, Journal of International Economics 9, 1-24.
Fukushima, Marcelo and Kikuchi, Toru (2009) “A Simple Model of Trade with Heterogeneous Firms and Trade Policy”, forthcoming in the Journal of Economic Research.
Harris, Richard G. (1995) “Trade and Communication Costs”, Canadian Journal of Economics 28, 46-75.
Harris, Richard G. (2001) “A Communication-Based Model of Global Production Fragmentation”, in Arndt, S. W. and Kierszkowski, H. (eds.), Fragmentation: New Production Patterns in the World Economy (New York: Oxford University Press).
Kikuchi, Toru (2006) “Time Zones as a source of Comparative Advantage”, Economics Bulletin.
Kostiuk, Peter F. (1990) “Compensating Differentials for Shift Work”, The Journal of Political Economy 98, 1054-1075.
Krugman, Paul (1979) “Increasing Returns, Monopolistic Competition, and International Trade”, Journal of International Economics 9, 469-79.
Lanfranchi, J., Ohlsson H., and Skalli, A.(2002) “Compensating Wage Differentials and Shift Work Preferences” Economics Letters 74, 393-398.
Marjit, Sugata (2007) “Trade Theory and the Role of Time Zones”, International Review of Economics and Finance 16, 153-160.
Available Versions of this Item
- Time Zones, Shift Working and Outsourcing through Communications Networks. (deposited 12. Feb 2009 05:27) [Currently Displayed]