Greg C. Wright

Immigration, Offshoring and American Jobs

The relocation of jobs abroad by multinationals and the increased labor market competition due to immigrant workers are often credited with the demise of many manufacturing jobs once held by American citizens. While it is certainly true that manufacturing production and employment, as a percentage of the total economy, have declined over recent decades in the United States, measuring the impact of those two aspects of globalization on jobs has been difficult. This is due to the possible presence of two opposing effects. On the one hand, there is a direct “displacement effect”: offshoring some production processes or hiring immigrants to perform them directly reduces the demand for native workers. On the other hand, there is an indirect “productivity effect”: the cost savings associated with employing immigrant and offshore labor increases the efficiency of the production process, thus raising the demand for native workers—if not in the same tasks that are offshored or given to immigrant workers, then certainly in tasks that are complementary to them.

Immigration, trade and productivity in services: Evidence from U.K. firms

This paper explores the impact of immigrants on the imports, exports and productivity of service- producing firms in the U.K. Immigrants may substitute for imported intermediate inputs (offshore production) and they may impact the productivity of the firm as well as its export behavior. The first effect can be understood as the re-assignment of offshore productive tasks to immigrant workers. The second can be seen as a productivity or cost cutting effect due to immigration, and the third as the effect of immigrants on specific bilateral trade costs. We test the predictions of our model using differences in immigrant inflows across U.K. labor markets, instrumented with an enclave-based instrument that distinguishes between aggregate and bilateral immigration, as well as immigrant diversity. We find that immigrants increase overall productivity in service-producing firms, revealing a cost cutting impact on these firms. Immigrants also reduce the extent of country-specific offshoring, consistent with a reallocation of tasks and, finally, they increase country-specific exports, implying an important role in reducing communication and trade costs for services.

The Container Security Initiative and Ocean Container Threats

Following September 11, 2001, U.S. policymakers created programs to protect the maritime supply chain. This paper analyzes one program, the Container Security Initiative, which inspects high-risk U.S.-bound containers at foreign ports. Although covering a small proportion of all ports that ship imports to the United States, the CSI has expanded rapidly and as of early 2006 covered two-thirds of U.S. containerized imports. However, CSI coverage of imports from potential terrorism source countries was lower than the overall U.S. average. Security planners can strengthen container-related maritime security by focusing on dangerous source regions and likely terrorist shipping routes.