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Title:Winners and losers: A micro-level analysis of international outsourcing and wages PDF Logo
Authors:Geishecker, Ingo
Görg, Holger
Issue Date:2007
Series/Report no.:CEPR Discussion Paper Series, Centre for Economic Policy Research (CEPR), London 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

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