Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/316872 
Year of Publication: 
2025
Series/Report no.: 
CESifo Working Paper No. 11758
Publisher: 
CESifo GmbH, Munich
Abstract: 
This study examines the impact of domestic outsourcing on the wages of workers performing outsourced tasks in Türkiye, using an administrative employee-employer linked dataset. Outsourcing events are identified by tracking worker flows across firms with specific properties. Unlike existing studies, our dataset incorporates buyer-supplier transactions, enabling us to confirm that a relationship between the predecessor and successor firm begins following the outsourcing event. This improves our ability to identify outsourcing events, which we use to explore wage effects of both high-skilled and low-skilled outsourcing. Our findings indicate that low-skilled workers experience wage losses from domestic outsourcing, while high-skilled, professional workers benefit, suggesting that domestic outsourcing may be one of the factors contributing to rising wage inequality.
Subjects: 
domestic outsourcing
subcontracting
wage inequality
JEL: 
J31
J41
L24
Document Type: 
Working Paper
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