Services Offshoring and Wages: Evidence from Micro Data
AbstractThis paper investigates the effects of services offshoring on wages using individual level data combined with industry information on offshoring. Our results show that services offshoring affects the real wage of low and medium skilled individuals negatively. By contrast, skilled workers benefit from services offshoring in terms of higher real wages. Hence, offshoring has contributed to a widening of the wage gap between skilled and less skilled workers. This result is obtained while controlling for individual and sectoral observed and unobserved heterogeneity. In particular, our empirical model also controls for the impact of technological change and offshoring of materials.
Download InfoIf 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.
Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 3593.
Length: 17 pages
Date of creation: Jul 2008
Date of revision:
Publication status: published in: Oxford Economic Papers, 2013, 65 (1), 124-146
Contact details of provider:
Postal: IZA, P.O. Box 7240, D-53072 Bonn, Germany
Phone: +49 228 3894 223
Fax: +49 228 3894 180
Web page: http://www.iza.org
Postal: IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany
Other versions of this item:
- Ingo Geishecker & Holger Görg, 2008. "Services offshoring and wages: Evidence from micro data," Kiel Working Papers 1434, Kiel Institute for the World Economy.
- Ingo Geishecker & Holger Görg, . "Services Offshoring and Wages: Evidence from Micro Data," Discussion Papers 08/22, University of Nottingham, GEP.
- 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; Longitudinal Data; Spatial Time Series
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-07-30 (All new papers)
- NEP-BEC-2008-07-30 (Business Economics)
- NEP-INT-2008-07-30 (International Trade)
- NEP-LAB-2008-07-30 (Labour Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Mary Amiti & Shang-Jin Wei, 2005.
"Fear of service outsourcing: is it justified?,"
CEPR & CES & MSH, vol. 20(42), pages 308-347, 04.
- Amiti, Mary & Wei, Shang-Jin, 2006. "Service Offshoring, Productivity and Employment: Evidence from the US," CEPR Discussion Papers 5475, C.E.P.R. Discussion Papers.
- Hijzen, Alexander & Görg, Holger & Hine, Robert C., 2004.
"International Outsourcing and the Skill Structure of Labour Demand in the United Kingdom,"
IZA Discussion Papers
1249, Institute for the Study of Labor (IZA).
- Alexander Hijzen & Holger Görg & Robert C. Hine, 2005. "International Outsourcing and the Skill Structure of Labour Demand in the United Kingdom," Economic Journal, Royal Economic Society, vol. 115(506), pages 860-878, October.
- Alexander Hijzen & Holger Görg & Robert C. Hine, 2004. "International Outsourcing and the Skill Structure of Labour Demand in the United Kingdom," Discussion Papers of DIW Berlin 437, DIW Berlin, German Institute for Economic Research.
- Robert C. Feenstra & Gordon H. Hanson, 1999. "The Impact Of Outsourcing And High-Technology Capital On Wages: Estimates For The United States, 1979-1990," The Quarterly Journal of Economics, MIT Press, vol. 114(3), pages 907-940, August.
- Alex Hijzen & Mauro Pisu & Richard Upward & Peter Wright, . "Employment, Job Turnover and the Trade in Producer Services: Firm-level Evidence," Discussion Papers 07/37, University of Nottingham, GEP.
- Rosario Crinò, 2009.
"Employment Effects of Service Offshoring: Evidence from Matched Firms,"
Development Working Papers
286, Centro Studi Luca d\'Agliano, University of Milano.
- Crinò, Rosario, 2010. "Employment effects of service offshoring: Evidence from matched firms," Economics Letters, Elsevier, vol. 107(2), pages 253-256, May.
- Rosario Crinò, 2009. "Employment Effects of Service Offshoring: Evidence from Matched Firms," UFAE and IAE Working Papers 800.09, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
- Rosario Crinò, 2009. "Employment Effects of Service Offshoring: Evidence from Matched Firms," Working Papers 417, Barcelona Graduate School of Economics.
- Rosario Crinò, 2009.
"Service Offshoring and White-Collar Employment,"
UFAE and IAE Working Papers
775.09, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
- Giuseppe Bognetti & Michele Santoni, 2010. "Can domestic unions gain from offshoring?," Journal of Economics, Springer, vol. 100(1), pages 51-67, May.
- Éva Polgár & Julia Wörz, 2010. "No risk and some fun? Trade and wages in the enlarged European Union," Empirica, Springer, vol. 37(2), pages 127-163, May.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mark Fallak).
If references are entirely missing, you can add them using this form.