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Individual Earnings, International Outsourcing and Technological Change

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Author Info

  • Chiara Broccolini

    ()
    (Università Politecnica delle Marche)

  • Alessia Lo Turco

    (Università Politecnica delle Marche)

  • Andrea F. Presbitero

    (Università Politecnica delle Marche)

  • Stefano Staffolani

Abstract

The aim of this paper is to empirically evaluate the relative effects of international outsourcing of materials and services and of ICT capital deepening on wage inequality between blue and white collars in the Italian manufacturing industry during the period 1985-1999. We merge an administrative data set on workers\' wages and individual characteristics with data on imported inputs from Italian input-output tables and other sector-level variables. Our results confirm that both material and service outsourcing widen the skilled/unskilled wage gap while ICT capital deepening positively affects real wages regardless of the worker\'s status. However, important differences emerge when the overall sample is split between traditional and innovative sectors.

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File URL: http://www.dagliano.unimi.it/media/WP2008_242.pdf
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Bibliographic Info

Paper provided by Centro Studi Luca d\'Agliano, University of Milano in its series Development Working Papers with number 242.

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Length: 24
Date of creation: 15 Apr 2008
Date of revision:
Handle: RePEc:csl:devewp:242

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Related research

Keywords: International Outsourcing; ICT; Wage Inequality;

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Cited by:
  1. Anna M. Falzoni & Lucia Tajoli, 2008. "Offshoring and the skill composition of employment in the Italian manufacturing industries," KITeS Working Papers, KITeS, Centre for Knowledge, Internationalization and Technology Studies, Universita' Bocconi, Milano, Italy 219, KITeS, Centre for Knowledge, Internationalization and Technology Studies, Universita' Bocconi, Milano, Italy, revised Jul 2008.
  2. Böckerman, Petri & Riihimäki, Elisa, 2009. "International outsourcing and labour demand: Evidence from Finnish firm-level data," MPRA Paper 16903, University Library of Munich, Germany.

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