Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/3232 
Year of Publication: 
2003
Series/Report no.: 
DIW Discussion Papers No. 385
Publisher: 
Deutsches Institut für Wirtschaftsforschung (DIW), Berlin
Abstract: 
Our paper investigates the link between international outsourcing and wages utilising a large household panel and combining it with industry level information on industries? outsourcing activities from input-output tables. By doing so we can arguably overcome the potential aggregation bias as well as other shortcomings that affect industry level studies. We find that outsourcing has had a marked impact on wages. Distinguishing three skill categories we find evidence that outsourcing reduced the real wage for workers in the lowest skill categories by up to 1.8% while it increased real wages for high-skilled workers by up to 3.3%. This result is robust to a number of different specifications.
Subjects: 
Outsourcing
Fragmentation
Skills
Wages
JEL: 
J31
L24
F16
Document Type: 
Working Paper

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