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

Arbeitspapier

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 one 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.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: CEPR Discussion Paper Series ; No. 6484

Classification and Topics

• Classification: Wirtschaft ; Trade and Labor Market Interactions ; Wage Level and Structure; Wage Differentials
• Subject: Outsourcing ; Offshoring ; Lohn ; Qualifikation ; Deutschland

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Geishecker, Ingo ; Görg, Holger
• Event: Veröffentlichung
• (who): Centre for Economic Policy Research (CEPR)
• (where): London
• (when): 2007

Further information

• Handle: http://hdl.handle.net/10419/4073
• Last update: 10.03.2025, 11:43 AM CET