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| Title: | | Winners and losers: A micro-level analysis of international outsourcing and wages  |
| Authors: | | Geishecker, Ingo Görg, Holger |
| Issue Date: | | 2007 |
| Citation: | | [Series:] Discussion paper [Editor:] Centre for Economic Policy Research, London [No.:] 6484 |
| Series/Report no.: | | CEPR Discussion paper series / Centre for Economic Policy Research 6484 |
| Abstract: | | 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. |
| JEL: | | F16 J31 |
| Document Type: | | Working Paper |
| Appears in Collections: | | Publikationen von Forscherinnen und Forschern des IfW Economists Online
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