Offshoring, Immigration, and the Native Wage Distribution
AbstractWhile workers in developed countries have become increasingly concerned about the impact that offshoring and immigration have on their wages, the available evidence remains mixed. This paper presents a simple model that examines the impact offshoring and immigration on wages and tests these predictions using U.S. state-industry-year panel data. According to the model, the productivity effect causes offshoring to have a more positive impact on low-skilled wages than immigration, but this gap decreases with the workers. skill level. The empirical results confirm both of these predictions and thus present direct evidence of the productivity effect. Furthermore, the results provide important insight into how specific components of o¤shoring and immigration affect the wages of particular types of native workers.
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Bibliographic InfoPaper provided by Department of Economics, Williams College in its series Department of Economics Working Papers with number 2010-10.
Length: 46 pages
Date of creation: Jul 2008
Date of revision: Feb 2011
Publication status: Forthcoming in Canadian Journal of Economics
Other versions of this item:
- William W. Olney, 2012. "Offshoring, immigration, and the native wage distribution," Canadian Journal of Economics, Canadian Economics Association, vol. 45(3), pages 830-856, August.
- F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
- F22 - International Economics - - International Factor Movements and International Business - - - International Migration
- J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
This paper has been announced in the following NEP Reports:
- NEP-AGR-2010-10-02 (Agricultural Economics)
- NEP-ALL-2010-10-02 (All new papers)
- NEP-ENV-2010-10-02 (Environmental Economics)
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