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| Title: | | Specialization, outsourcing and wages  |
| Authors: | | Munch, Jakob Roland Rose Skaksen, Jan |
| Issue Date: | | 2005 |
| Series/Report no.: | | IZA Discussion Papers 1907 |
| Abstract: | | This paper studies the impact of outsourcing on individual wages. In contrast to the standard approach in the literature, we focus on domestic outsourcing as well as foreign outsourcing. By using a simple theoretical model, we argue that, if outsourcing is associated with specialization gains arising from an increase in the division of labor, domestic outsourcing tends to increase wages for both unskilled and skilled labor. We use a panel data set of workers in Danish manufacturing industries to show that domestic and foreign outsourcing affect wages as predicted by the theory. |
| Subjects: | | outsourcing comparative advantage specialization wages |
| JEL: | | F16 J31 C23 |
| Document Type: | | Working Paper |
| Appears in Collections: | | IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)
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