Individual Earnings, International Outsourcing and Technological Change

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Individual Earnings, International Outsourcing and Technological Change

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Chiara Broccolini () (Università Politecnica delle Marche)
Alessia Lo Turco (Università Politecnica delle Marche)
Andrea F. Presbitero (Università Politecnica delle Marche)
Stefano Staffolani

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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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Publisher 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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Find related papers by JEL classification:
F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data
O3 - Economic Development, Technological Change, and Growth - - Technological Change

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Böckerman, Petri & Riihimäki, Elisa, 2009. "International outsourcing and labour demand: Evidence from Finnish firm-level data," MPRA Paper 16903, University Library of Munich, Germany. [Downloadable!]
Anna M. Falzoni & Lucia Tajoli, 2008. "Offshoring and the skill composition of employment in the Italian manufacturing industries," CESPRI Working Papers 219, CESPRI, Centre for Research on Innovation and Internationalisation, Universita' Bocconi, Milano, Italy, revised Jul 2008. [Downloadable!]

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