Offshoring, Biased Technical Change and Labor Demand: New Evidence from Global Value Chains

Laurie S.M. Reijnders, Marcel Timmer, Xianjia Ye

Research output: Working paperAcademic


We present a novel approach to measure biased technical change in global value chains. In this approach, final output is mapped to labor and capital employed at any stage of production, in any country. We analyze changes in factor cost shares and find robust evidence of a bias in favor of college-educated workers and capital, and against non-college educated workers. Simulations suggest that offshoring and biased technical change contribute equally to the decline in employment of non-college educated workers in advanced countries
Original languageEnglish
Place of PublicationGroningen
Publication statusPublished - Oct-2016

Publication series

NameGGDC Research Memoranda
PublisherGroningen Growth and Development Center

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