Tuesday, December 06, 2005

Outsourcing America

The recently passed budget bill passed has part of its total dollar amount dedicated to finding the true impact outsourcing jobs. As the article discusses there are many US companies that shift parts of their business practices to cheaper foreign labor, but the true impact of these practices has not been easily measured due to lack of cooperation from the employers. This data will possibly help to further explain shifts in the American workforce. For example, in labor economics we have discussed the decline of unionism in the US for private sector firms. One explanation is the structural hypothesis that points to globalization as a major cause. This study may help in further understanding these declines, but will not be easy to come by since data acquisition is very difficult.

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