Advanced Search
MyIDEAS: Login

Outsourcing, labour productivity and wage inequality in the US: a primal approach

Contents:

Author Info

  • Aekapol Chongvilaivan
  • Jung Hur

Abstract

We investigate the linkages among outsourcing activities, labour productivity and wage inequality for skilled and unskilled labour by employing a primal approach that involves estimating a nested constant elasticity of substitution production function, using six-digit North American Industry Classification System US manufacturing industries from 2002 to 2005. First, we find that general outsourcing and international outsourcing have a skill-biased impact on labour productivity. However, the skill-biased impact of general outsourcing on labour productivity is larger than that of international outsourcing. Second, we find that the wage gap between skilled and unskilled labour, which is defined as their marginal productivity gap, can be better explained by general outsourcing than by international outsourcing. These two results imply that the wage inequality of US manufacturing industries during 2002-2005 was mainly due to the skill-biased labour productivity effect of general outsourcing rather than that of international outsourcing.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802360302
Download Restriction: Access to full text is restricted to subscribers.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Applied Economics.

Volume (Year): 43 (2011)
Issue (Month): 4 ()
Pages: 487-502

as in new window
Handle: RePEc:taf:applec:v:43:y:2011:i:4:p:487-502

Contact details of provider:
Web page: http://www.tandfonline.com/RAEC20

Order Information:
Web: http://www.tandfonline.com/pricing/journal/RAEC20

Related research

Keywords:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:taf:applec:v:43:y:2011:i:4:p:487-502. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.