International Outsourcing and the Skill-Specific Wage Bill in Eastern Europe
AbstractThe paper analyses the effects of international fragmentation in terms of intermediate goods trade on the dynamics of skill-specific real wage bills in manufacturing of three Central and East European countries (Hungary, Poland, the Czech Republic). Both intermediate goods exports and imports of the CEECs exhibit a positive impact on the unskilled workers' wage bill. Since 1993, intermediate goods trade with the European Union alone has accounted for a reduction of about 58 per cent of the predicted annual change in the skilled-to-unskilled wage bill ratio in Hungary's manufacturing. The corresponding contribution was 31 per cent in the Czech Republic and 30 per cent in Poland.
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Bibliographic InfoPaper provided by The Vienna Institute for International Economic Studies, wiiw in its series wiiw Working Papers with number 17.
Date of creation: Jul 2001
Date of revision:
Publication status: Published as wiiw Working Paper
Other versions of this item:
- Peter Egger & Robert Stehrer, 2003. "International Outsourcing and the Skill--Specific Wage Bill in Eastern Europe," The World Economy, Wiley Blackwell, vol. 26(1), pages 61-72, January.
- Peter Egger & Robert Stehrer, . "International Outsourcing and the Skill-Specific Wage Bill in Eastern Europe," WIFO Working Papers 151, WIFO.
- 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
- F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
- F40 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - General
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