Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/3131
Authors: 
Geishecker, Ingo
Görg, Holger
Year of Publication: 
2004
Series/Report no.: 
IZA Discussion paper series 982
Abstract: 
Our paper investigates the link between 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 endogeneity bias as well as other shortcomings that affect industry level studies. We find that fragmentation 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; this result is robust to a number of different specifications and definitions of outsourcing. Furthermore we find some evidence that high-skilled workers experienced increased wages due to fragmentation.
Subjects: 
outsourcing
fragmentation
skills
wages
trade
JEL: 
J31
F16
L24
Document Type: 
Working Paper

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