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Did Outsourcing to Low-wage Countries Hurt Less-skilled Workers in the UK?

In: Global Trade and European Workers

Author

Listed:
  • Bob Anderton
  • Paul Brenton

Abstract

Over much of the past two decades the relative wages and employment of the low skilled have fallen dramatically in the UK. Between 1980 and 1992, for example, the real earnings of the top tenth of male earners in the UK rose by 51 per cent, whereas the earnings of the bottom tenth only increased by 11 per cent.1 Nickell (1996) shows that the unemployment rate of less-skilled males in the UK rose from 6.4 per cent in the mid-1970s to 18.2 per cent in the mid-1980s, whereas over the same period the unemployment rate of skilled males rose only from 2.0 per cent to 4.7 per cent. The rise in UK wage inequality has also been in many directions. Although the most significant widening of relative wages has occurred between manual and non-manual workers, there has also been a large increase in the dispersion of wages within the categories of both manual and non-manual workers (see Gregg and Machin, 1994).

Suggested Citation

  • Bob Anderton & Paul Brenton, 1999. "Did Outsourcing to Low-wage Countries Hurt Less-skilled Workers in the UK?," Palgrave Macmillan Books, in: Paul Brenton & Jacques Pelkmans (ed.), Global Trade and European Workers, chapter 7, pages 147-166, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-349-27035-4_7
    DOI: 10.1007/978-1-349-27035-4_7
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    Citations

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    Cited by:

    1. Sébastien Breau & David L. Rigby, 2010. "International trade and wage inequality in Canada," Journal of Economic Geography, Oxford University Press, vol. 10(1), pages 55-86, January.
    2. Hansson, Pär, 2001. "Skill Upgrading and Production Transfer within Swedish Multinationals in the 1990s," Working Paper Series 166, Trade Union Institute for Economic Research.
    3. Ho, Lok Sang & Wei, Xiangdong & Wong, Wai Chung, 2005. "The effect of outward processing trade on wage inequality: the Hong Kong case," Journal of International Economics, Elsevier, vol. 67(1), pages 241-257, September.
    4. Greenaway, David & Nelson, Douglas, 2000. "The Assessment: Globalization and Labour-Market Adjustment," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 16(3), pages 1-11, Autumn.
    5. Rigby, D L & Breau, Sebastien, 2007. "Impacts of Trade on Wage Quality in Los Angeles: Analysis Using Matched Employer-Employee Data," Center for Global, International and Regional Studies, Working Paper Series qt0fh5z1hf, Center for Global, International and Regional Studies, UC Santa Cruz.
    6. David Rigby & Sebastien Breau, 2006. "Impacts of Trade on Wage Inequality in Los Angeles: Analysis Using Matched Employer-Employee Data," Working Papers 06-12, Center for Economic Studies, U.S. Census Bureau.

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