Brief

Services offshoring increases wage inequality

voxeu.org

The effects of offshoring on wages remain a hotly debated issue. This column explores the case of UK firms between 1992 and 2004, recognising that offshoring in one particular industry may also affect labour demand in other industries. It suggests that services and materials offshoring increase the wages of high-skilled workers and decreases the wages of low- and medium-skilled workers, thus contributing to a rising wage inequality.

Authors

Ingo Geishecker
Christiane Krieger-Boden - Institut für Weltwirtschaft (IfW) / Kiel Institute for the World Economy
Christiane Krieger-Boden

Info

Publication Date
JEL Classification
F21, F16