Arbeitspapier

The Impact of International Outsourcing on the Skill Structure of Employment: Empirical Evidence from German Manufacturing Industries

In recent publications it has been argued that the change of the skill structure of industrial employment is caused by biased technical progress rather than by increasing international trade with low wage countries. However, in linking prices for final goods with prices of primary factors, most empirical studies have only dealt with international trade in final goods and have thereby neglected the impact of international outsourcing. In this paper it is argued that outsourcing can be understood as a substitution of imported intermediate inputs for domestic value added, and that such substitution may have an impact on the skill structure of domestic employment in favor of skilled labor. The empirical evidence for German manufacturing industries supports this hypothesis.

Language
Englisch

Bibliographic citation
Series: Kiel Working Paper ; No. 946

Classification
Wirtschaft
Trade: General
Wage Level and Structure; Wage Differentials
Subject
International Outsourcing
Trade
Wages
Employment.
Outsourcing
international
Faktorproportionentheorem
Faktorpreisausgleich
Lohnstruktur
Qualifikation
Berufsstruktur
Industrieller Strukturwandel
Importsubstitution
Kostenfunktion
Beschäftigungseffekt
Schätzung
Deutschland

Event
Geistige Schöpfung
(who)
Diehl, Markus
Event
Veröffentlichung
(who)
Kiel Institute of World Economics (IfW)
(where)
Kiel
(when)
1999

Handle
Last update
10.03.2025, 11:41 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Diehl, Markus
  • Kiel Institute of World Economics (IfW)

Time of origin

  • 1999

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