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International Outsourcing and the Productivity of Low-skilled Labour in the EU

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  • Hartmut Egger
  • Peter Egger

    (WIFO)

Abstract

This article presents first insights into the role of international outsourcing on the productivity of low-skilled workers in EU manufacturing. Whereas in the short run international outsourcing exhibits a negative marginal effect on real value added per low-skilled worker, the long-run parameter estimates reveal a positive impact. This may be explained by imperfections in European labor and goods markets, which prohibit an immediate adjustment in the factor employment and the output structure. The change in the outsourcing intensity since 1993 alone acounts for a long-run increase of about 6.0% in the real value added per low-skilled worker. (JEL C33, F14, F15) Copyright 2006, Oxford University Press.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Hartmut Egger & Peter Egger, 2001. "International Outsourcing and the Productivity of Low-skilled Labour in the EU," WIFO Working Papers 152, WIFO.
    • Handle: RePEc:wfo:wpaper:y:2001:i:152
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    File URL: https://www.wifo.ac.at/wwa/pubid/20443
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    References listed on IDEAS

    as
    1. Keller, W., 1997. "Trade Patterns, Technology Flows, and Productivity Growth," Working papers 9701, Wisconsin Madison - Social Systems.
    2. Donald Siegel & Zvi Griliches, 1992. "Purchased Services, Outsourcing, Computers, and Productivity in Manufacturing," NBER Chapters, in: Output Measurement in the Service Sectors, pages 429-460, National Bureau of Economic Research, Inc.
    3. Slaughter, Matthew J., 2000. "Production transfer within multinational enterprises and American wages," Journal of International Economics, Elsevier, vol. 50(2), pages 449-472, April.
    4. Pirotte, Alain, 1999. "Convergence of the static estimation toward the long run effects of dynamic panel data models," Economics Letters, Elsevier, vol. 63(2), pages 151-158, May.
    5. Hine, Robert C & Wright, Peter W, 1998. "Trade with Low Wage Economies, Employment and Productivity in UK Manufacturing," Economic Journal, Royal Economic Society, vol. 108(450), pages 1500-1510, September.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    International Outsourcing and the Productivity of Low-skilled Labour in the EU;

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration

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