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International Outsourcing and German Manufacturing Wages

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  • Ingo Geishecker
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    Abstract

    This 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 Info

    Article provided by Duncker & Humblot, Berlin in its journal Schmollers Jahrbuch.

    Volume (Year): 125 (2005)
    Issue (Month): 1 ()
    Pages: 87-95

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    Handle: RePEc:aeq:aeqsjb:v125_y2005_i1_q1_p87-95

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    Web page: http://www.duncker-humblot.de

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    Web: http://www.duncker-humblot.de/index.php/zeitschriften/wirtschafts-undsozialwissenschaften/schmollersjahrbuch-1.html

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    Cited by:
    1. 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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