IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/13355.html
   My bibliography  Save this paper

Time Zones, Shift Working and Outsourcing through Communications Networks

Author

Listed:
  • Matsuoka, Yuji
  • Fukushima, Marcelo

Abstract

We build a trade model with two countries located in different time zones, a monopolistically competitive sector in which production requires differentiated goods produced using day and night labor, and shift working disutility. Consumers choose between working at a day shift or a night shift and firms may choose to “virtually” outsource foreign day time labor by using communications services. We found that the higher the disutility of working at night is, the smaller is the number of varieties produced. Trade is beneficial only under certain concavity and cost conditions. The higher the disutility of working at night, the larger can be the gains from trade.

Suggested Citation

  • Matsuoka, Yuji & Fukushima, Marcelo, 2009. "Time Zones, Shift Working and Outsourcing through Communications Networks," MPRA Paper 13355, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:13355
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/13355/1/MPRA_paper_13355.pdf
    File Function: original version
    Download Restriction: no
    File URL: https://mpra.ub.uni-muenchen.de/16178/2/MPRA_paper_16178.pdf
    File Function: revised version
    Download Restriction: no
    File URL: https://mpra.ub.uni-muenchen.de/20946/1/MPRA_paper_20946.pdf
    File Function: revised version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Richard G. Harris, 1995. "Trade and Communication Costs," Canadian Journal of Economics, Canadian Economics Association, vol. 28(s1), pages 46-75, November.
    2. Ethier, Wilfred, 1979. "Internationally decreasing costs and world trade," Journal of International Economics, Elsevier, vol. 9(1), pages 1-24, February.
    3. Dixit, Avinash K & Stiglitz, Joseph E, 1977. "Monopolistic Competition and Optimum Product Diversity," American Economic Review, American Economic Association, vol. 67(3), pages 297-308, June.
    4. Lanfranchi, Joseph & Ohlsson, Henry & Skalli, Ali, 2002. "Compensating wage differentials and shift work preferences," Economics Letters, Elsevier, vol. 74(3), pages 393-398, February.
    5. Kostiuk, Peter F, 1990. "Compensating Differentials for Shift Work," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 1054-1075, October.
    6. Fukushima, Marcelo & Kikuchi, Toru, 2008. "A Simple Model of Trade with Heterogeneous Firms and Trade Policy," MPRA Paper 9573, University Library of Munich, Germany.
    7. Lanfranchi, Joseph & Ohlsson, Henry & Skalli, Ali, 2002. "Compensating wage differentials and shift work preferences," Economics Letters, Elsevier, vol. 74(3), pages 393-398, February.
    8. Toru Kikuchi, 2009. "Time Zones as a Source of Comparative Advantage," Review of International Economics, Wiley Blackwell, vol. 17(5), pages 961-968, November.
    9. Marjit, Sugata, 2007. "Trade theory and the role of time zones," International Review of Economics & Finance, Elsevier, vol. 16(2), pages 153-160.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Toru Kikuchi & Sugata Marjit & Biswajit Mandal, 2013. "Trade with Time Zone Differences: Factor Market Implications," Review of Development Economics, Wiley Blackwell, vol. 17(4), pages 699-711, November.
    2. Toru Kikuchi & Ngo Van Long, 2011. "Shift Working And Trade In Labour Services With Time Zone Differences," Pacific Economic Review, Wiley Blackwell, vol. 16(5), pages 553-564, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Matsuoka, Yuji & Fukushima, Marcelo, 2010. "Time zones, shift working and international outsourcing," International Review of Economics & Finance, Elsevier, vol. 19(4), pages 769-778, October.
    2. Toru Kikuchi & Sugata Marjit & Biswajit Mandal, 2013. "Trade with Time Zone Differences: Factor Market Implications," Review of Development Economics, Wiley Blackwell, vol. 17(4), pages 699-711, November.
    3. Felipe Miranda & Juan Carlos Muñoz & Juan de Dios Ortúzar, 2008. "Identifying Transit Driver Preferences for Work Shift Structures: An Econometric Analysis," Transportation Science, INFORMS, vol. 42(1), pages 70-86, February.
    4. Desiere, Sam & Walter, Christian, 2023. "The Shift Premium: Evidence from a Discrete Choice Experiment," IZA Discussion Papers 16460, Institute of Labor Economics (IZA).
    5. Sæther, Erik Magnus, 2009. "Nurses’ labor supply with endogenous choice of care level and shift type A nested discrete choice model with nonlinear income," HERO Online Working Paper Series 2004:9, University of Oslo, Health Economics Research Programme.
    6. Sæther, Erik Magnus, 2009. "Compensating differentials for nurses," HERO Online Working Paper Series 2004:10, University of Oslo, Health Economics Research Programme.
    7. Alexandre Mas & Amanda Pallais, 2017. "Valuing Alternative Work Arrangements," American Economic Review, American Economic Association, vol. 107(12), pages 3722-3759, December.
    8. Ronald DeBeaumont & Christian Nsiah, 2010. "Unemployment and compensating wages: an analysis of shift work," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 34(2), pages 142-149, April.
    9. Di Tommaso, M.L. & Strøm, S. & Sæther, E.M., 2009. "Nurses wanted: Is the job too harsh or is the wage too low?," Journal of Health Economics, Elsevier, vol. 28(3), pages 748-757, May.
    10. Senney, Garrett T. & Dunn, Lucia F., 2019. "The role of work schedules and the macroeconomy on labor effort," Labour Economics, Elsevier, vol. 57(C), pages 23-34.
    11. MORIKAWA Masayuki, 2010. "Insecurity of Employment and Work-Life Balance: From the viewpoint of compensating wage differentials," Discussion papers 10052, Research Institute of Economy, Trade and Industry (RIETI).
    12. Scheffel, Juliane, 2011. "How do unusual working schedules affect social life?," SFB 649 Discussion Papers 2011-025, Humboldt University Berlin, Collaborative Research Center 649: Economic Risk.
    13. Nikolaos Georgantzis & Efi Vasileiou, 2012. "Are dangerous jobs paid better? European evidence," Working Papers 2012/18, Economics Department, Universitat Jaume I, Castellón (Spain).
    14. Noritsugu Nakanishi & Ngo Van Long, 2015. "The Distributional and Allocative Impacts of Virtual Labor Mobility across Time Zones through Communication Networks," Review of International Economics, Wiley Blackwell, vol. 23(3), pages 638-662, August.
    15. Nikolaos Georgantzis & Efi Vasileiou, 2014. "Are Dangerous Jobs Paid Better? European Evidence," Research in Labor Economics, in: New Analyses of Worker Well-Being, volume 38, pages 163-192, Emerald Group Publishing Limited.
    16. Tanguy Brachet & Guy David & Andrea M. Drechsler, 2012. "The Effect of Shift Structure on Performance," American Economic Journal: Applied Economics, American Economic Association, vol. 4(2), pages 219-246, April.
    17. Joseph Lanfranchi & Henry Ohlsson & Ali Skalli, 2004. "Action collective et différences compensatrices : le cas des travailleurs masculins à horaires atypiques," Economie & Prévision, La Documentation Française, vol. 0(3), pages 57-79.
    18. Fabrice Gilles, 2015. "Evaluating the Impact of a Working Time Regulation on Capital Operating Time: The French 35-hour Work Week Experience," Scottish Journal of Political Economy, Scottish Economic Society, vol. 62(2), pages 117-148, May.
    19. Serena Yu & David Peetz, 2019. "Non‐Standard Time Wage Premiums and Employment Effects: Evidence from an Australian Natural Experiment," British Journal of Industrial Relations, London School of Economics, vol. 57(1), pages 33-61, March.
    20. Jos Van Ommeren & Mihails Hazans, 2008. "Workers' Valuation of the Remaining Employment Contract Duration," Economica, London School of Economics and Political Science, vol. 75(297), pages 116-139, February.

    More about this item

    Keywords

    Communications networks; shift work; time zones; outsourcing;
    All these keywords.

    JEL classification:

    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • F1 - International Economics - - Trade

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:13355. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.