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International Outsourcing and the Skill--Specific Wage Bill in Eastern Europe

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Author Info
Peter Egger (University of Innsbruck, Austria)
Robert Stehrer (WIIW, Austria)

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Abstract

This paper analyses the effects of international fragmentation in terms of intermediate goods trade on the dynamics of the skilled--to--unskilled labour wage bill ratio in 14 manufacturing industries of the Czech Republic, Hungary and Poland. Both intermediate goods exports and imports of the CEEC exhibit a positive impact on the wage bill ratio. Since 1993, intermediate goods trade with the EU alone has accounted for a considerable reduction of the predicted annual change in the skilled--to--unskilled wage bill ratio in the three CEEC. Copyright Blackwell Publishing Ltd 2003

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Article provided by Blackwell Publishing in its journal The World Economy.

Volume (Year): 26 (2003)
Issue (Month): 1 (January)
Pages: 61-72
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Handle: RePEc:bla:worlde:v:26:y:2003:i:1:p:61-72

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  1. Özlem Onaran & Engelbert Stockhammer, 2006. "The effect of FDI and foreign trade on wages in the Central and Eastern European Countries in the post-transition era: A sectoral analysis," Department of Economics Working Papers wuwp094, Vienna University of Economics and B.A., Department of Economics. [Downloadable!]
  2. Giovanni S.F. Bruno & Rosario Crinò & Anna M. Falzoni, 2004. "Foreign Direct Investment, Wage Inequality, and Skilled Labor Demand in EU Accession Countries," CESPRI Working Papers 154, CESPRI, Centre for Research on Innovation and Internationalisation, Universita' Bocconi, Milano, Italy, revised Feb 2004. [Downloadable!]
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  3. Kaminski, Bartlomiej & Ng, Francis, 2004. "Romania's integration into European markets : implications for sustainability of the current export boom," Policy Research Working Paper Series 3451, The World Bank. [Downloadable!]
  4. Hajnalka Tarjani, 2005. "Estimating some labour market implications of skill biased technology change and imports in Hungary," IEHAS Discussion Papers 0508, Institute of Economics, Hungarian Academy of Sciences. [Downloadable!]
  5. Fragkiskos Filippaios & Constantina Kottaridi, 2008. "Complements or Substitutes? New Theoretical Considerations and Empirical Evidence on the Imports and FDI Relationship," Working Papers 0026, University of Peloponnese, Department of Economics. [Downloadable!]
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