Trade in Tasks Rainer Lanz, Sébastien Miroudot, Hildegunn Kyvik Nordås OECD TAD/TSD Working Party on International Trade in Goods and Trade in Services.
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Trade in Tasks Rainer Lanz, Sébastien Miroudot, Hildegunn Kyvik Nordås OECD TAD/TSD Working Party on International Trade in Goods and Trade in Services Statistics (8 November) Overview • Trade in tasks: another turn in the virtous cycle of expanding markets and deepening division of labour • Measuring trade in task – a difficult task • The driving forces: Taylorism vs. Toyotaism? • Empirical analysis OECD Trade & Agriculture 2 Trade in tasks – deepening division of labour OECD Trade & Agriculture 3 How can trade in tasks be measured? Alternative 1: outsourcing of jobs 1. Map tasks by occupation 2. Identify the occupations where tradable tasks are the most important 3. Calculate the share in total employment of these occupations Alternative 2: tasks embodied in traded goods and services 1. Map tasks by occupation 2. Map employment by occupation and sector 3. Yields task by sector 4. Map production by sector to goods and services produced 5. Yields traded tasks – does not distinguish embodied and disembodied tasks. OECD Trade & Agriculture 4 Alternative 2: the task content of output Intensity of task h in sector s TC11 TIths TCh1 TC1 j t11 x TChj tj1 t1s tjs Content of task h in total output TIt11 Tthy TIth1 OECD Trade & Agriculture TIt1s Yt1 x TIths Yts 5 Cluster analysis Physical tasks Tasks related to mechanical equipment • Getting information • Making decisions and solving problems • Updating and using relevant knowledge • Organizing and prioritizing work • Communicating with supervisors • Establishing and maintaining interpersonal relationships Tasks related to machines Working with the public Selling and controlling Working with others Thinking creatively Information processing tasks Identifying and monitoring Getting information and communicating 0 OECD Trade & Agriculture .5 1 L2 dissimilarity measure 1.5 6 .01 .02 .02 .03 .04 .04 .05 .06 .06 .07 .08 .08 Chef 111 112 121 122 123 211 212 213 214 221 222 223 224 225 226 311 312 313 314 321 322 324 325 326 411 412 413 414 415 416 417 418 421 422 423 424 425 426 431 432 433 0 111 112 121 122 123 211 212 213 214 221 222 223 224 225 226 311 312 313 314 321 322 324 325 326 411 412 413 414 415 416 417 418 421 422 423 424 425 426 431 432 433 0 Task content of occupations Fast food cook OECD Trade & Agriculture 7 Task content of output by cluster OECD Trade & Agriculture 8 Partial correlations – output share of task clusters and imports of goods and services Working with others Information processing tasks Getting information and communicating Import penetration goods 0.013 0.003 -0.011 Import penetration services -0.034 0.119*** 0.083*** OECD Trade & Agriculture 9 Trade and the composition of tasks • Only small changes in the task content of output between 2000 and 2008 • Task contents of exports and output are similar • Import penetration of services is complementary to the tasks ‘Information processing’ and ‘getting information and communicating’ • Limited impact of import penetration on the task allocation within industries – Import penetration in capital-intensive industries shift tasks directly related to production to more informationbased activities OECD Trade & Agriculture 10 Some reflections • Fragmentation of production is not the same as fragmentation of jobs – • • Functions that are outsourced or offshored become new industries manned by multitask workers in a broad range of occupations and skill levels Insights from the transaction cost based theory of the firm: The boundary of the firm is defined by balancing transaction costs, coordination costs and incentives. Taylorism versus toyotism? OECD Trade & Agriculture 11 Caveats • Variation in our data is due to changes in employment by occupation. – Time series of task by occupation would ideally be needed • Task content by occupation is assumed to be the same across countries – reasonable? • More detailed analysis needed (services trade by services category and source, firm-level data by task) OECD Trade & Agriculture 12