International Outsourcing and German Manufacturing Wages
AbstractThis paper investigates the link between international outsourcing and wages utilising the German Socio-Economic Panel (SOEP) and combining it with industry-level information on industries' outsourcing activities. Instead of following the literature by differentiating between manual and non-manual workers, I also utilise data on educational attainment in order to distinguish between skill categories. While outsourcing proves to be statistically insignificant for manual and non-manual workers' wages, I find evidence that when applying a more accurate skill definition, a one percentage point increase in our outsourcing measure reduces the real wage for low-skilled workers by 1.7 percent while it increases real wages for high-skilled workers by 2.2 percent.
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Bibliographic InfoArticle provided by Duncker & Humblot, Berlin in its journal Schmollers Jahrbuch.
Volume (Year): 125 (2005)
Issue (Month): 1 ()
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Web page: http://www.duncker-humblot.de
Find related papers by JEL classification:
- F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
- L24 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Contracting Out; Joint Ventures
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
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- Wagner, Joachim, 2009.
"Offshoring and Firm Performance: Self-Selection, Effects on Performance, or Both?,"
IZA Discussion Papers
4605, Institute for the Study of Labor (IZA).
- Joachim Wagner, 2011. "Offshoring and firm performance: self-selection, effects on performance, or both?," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 147(2), pages 217-247, June.
- Joachim Wagner, 2009. "Offshoring and firm performance: Self-selection, effects on performance, or both?," Working Paper Series in Economics 153, University of Lüneburg, Institute of Economics.
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