Journal Article

Winners and losers: A micro-level analysis of international outsourcing and wages

Canadian Journal of Economics, 41(1): 243-270

Our paper investigates the link between international outsourcing and wages utilizing a large household panel and combining it with industry-level information on industries' outsourcing activities from input-output tables. This approach avoids problems such as aggregation bias, potential endogeneity bias, and poor skill definitions that commonly hamper industry-level studies. We find that outsourcing has had a marked impact on wages. Applying two alternative skill classifications, we find evidence that a 1 percentage point increase in outsourcing reduced the wage for workers in the lowest skill categories by up to 1.5%, while it increased wages for high-skilled workers by up to 2.6%. This result is robust to a number of different specifications.

Autoren

Ingo Geishecker

Info

Erscheinungsdatum
JEL Classification
F16, J31
DOI
10.1111/j.1365-2966.2008.00462.x