Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/33383 
Year of Publication: 
2005
Series/Report no.: 
IZA Discussion Papers No. 1907
Publisher: 
Institute for the Study of Labor (IZA), Bonn
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

Files in This Item:
File
Size
324.59 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.