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Title:Winners and losers: a micro-level analysis of international outsourcing and wages
Authors:Geishecker, Ingo
Görg, Holger
Issue Date:2008
Citation:[Journal:] The Canadian journal of economics [ISSN:] 0008-4085 [Volume:] 41 [Year:] 2008 [Issue:] 1 [Pages:] 243-270 [DOI/URN:] doi:10.1111/j.1365-2966.2008.00462.x
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 1 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
Persistent Identifier of the first edition:doi:10.1111/j.1365-2966.2008.00462.x
Document Type:Article
Appears in Collections:Economists Online

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