In 2004, the then Information Technology Association of America (Now the Technology Association of America), an industry group that supports offshore outsourcing and increasing the H-1B cap, hired an independent economic forecasting firm, IHS Global Insight, to study the issue. IHS Global found that offshore outsourcing could cause some workers to take a job that pays less, which would result in "wage compression."
Tambe said the goal of the new report is to look "precisely look at how domestic workers are being affected by globalization -- I'm not really making a judgment on whether that is good or bad.
"Although our findings suggest that the negative effects of globalization may be substantial for some workers, it is critical that policy makers weigh these effects carefully against the macro-level economic effects," said Tambe and Hitt in the report. "Offshoring will most likely remain a necessary and important part of the global economy, and there is substantial evidence that H-1B admissions appear to directly improve levels of innovation and entrepreneurship, which in the long term should create new jobs and raise demand for technology workers in other areas.
"In this paper, we simply sought to dispel the myth that globalization generates no losers, and we begin to identify how the global migration of jobs and workers is affecting some high-skill workers in the US. Globalization does appear to have a negative wage effects on workers in some occupations, and as business and labor continue to become increasingly global, any discussions should include how best to prepare the vulnerable members of the US workforce for global competition," they added.