Winners and losers: fragmentation, trade and wages revisited

Arbeitspapier

Our paper investigates the link between 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 endogeneity bias as well as other shortcomings that affect industry level studies. We find that fragmentation 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; this result is robust to a number of different specifications and definitions of outsourcing. Furthermore we find some evidence that high-skilled workers experienced increased wages due to fragmentation.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IZA Discussion Papers ; No. 982

Classification and Topics

• Classification: Wirtschaft ; Wage Level and Structure; Wage Differentials ; Trade and Labor Market Interactions ; Contracting Out; Joint Ventures; Technology Licensing
• Subject: outsourcing ; fragmentation ; skills ; wages ; trade ; Lohnstruktur ; Outsourcing ; Internationale Arbeitsteilung ; Globalisierung ; Schätzung ; Deutschland

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Geishecker, Ingo ; Görg, Holger
• Event: Veröffentlichung
• (who): Institute for the Study of Labor (IZA)
• (where): Bonn
• (when): 2004

Further information

• Handle: http://hdl.handle.net/10419/3131
• Last update: 10.03.2025, 11:44 AM CET