Winners and losers: fragmentation, trade and wages revisited

Arbeitspapier

Our paper investigates the link between international outsourcing and wages utilising a large household panel and combining it with industry level information on industries? outsourcing activities from input-output tables. By doing so we can arguably overcome the potential aggregation bias as well as other shortcomings that affect industry level studies. We find that outsourcing has had a marked impact on wages. Distinguishing three skill categories we find evidence that outsourcing reduced the real wage for workers in the lowest skill categories by up to 1.8% while it increased real wages for high-skilled workers by up to 3.3%. This result is robust to a number of different specifications.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: DIW Discussion Papers ; No. 385

Classification and Topics

• Classification: Wirtschaft ; Wage Level and Structure; Wage Differentials ; Contracting Out; Joint Ventures; Technology Licensing ; Trade and Labor Market Interactions
• Subject: Outsourcing ; Fragmentation ; Skills ; Wages ; Lohnstruktur ; Outsourcing ; Internationale Arbeitsteilung ; Globalisierung ; Schätzung ; Deutschland

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Görg, Holger ; Geishecker, Ingo
• Event: Veröffentlichung
• (who): Deutsches Institut für Wirtschaftsforschung (DIW)
• (where): Berlin
• (when): 2003

Further information

• Handle: http://hdl.handle.net/10419/3232
• Last update: 10.03.2025, 11:43 AM CET