Matsuoka, Yuji and Fukushima, Marcelo (2009): Time Zones, Shift Working and International Outsourcing.
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We build a trade model with two identical countries located in different time zones and a monopolistically competitive sector of which production requires differentiated goods produced in two successive stages. We introduce shift working disutility and allow consumers to choose between day and night shifts. Shift working disutility raises the cost of night production and firms can reduce costs by “virtually” outsourcing foreign labor. We found that firms only outsource if relative costs of outsourcing are low and shift disutility is high. When outsourcing occurs under free trade, it generates the highest level of welfare among production modes. An intermediate range of shift working disutility can generate the lowest level of welfare and be not affected by the reduction of outsourcing costs.
|Item Type:||MPRA Paper|
|Original Title:||Time Zones, Shift Working and International Outsourcing|
|Keywords:||Shift working, time zones, outsourcing, monopolistic competition|
|Subjects:||J - Labor and Demographic Economics > J3 - Wages, Compensation, and Labor Costs
F - International Economics > F1 - Trade
|Depositing User:||Yuji Matsuoka|
|Date Deposited:||12. Jul 2009 23:48|
|Last Modified:||12. Feb 2013 21:41|
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Available Versions of this Item
Time Zones, Shift Working and Outsourcing through Communications Networks. (deposited 12. Feb 2009 05:27)
- Time Zones, Shift Working and International Outsourcing. (deposited 12. Jul 2009 23:48) [Currently Displayed]