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Outsourcing Types, Relative Wages, And The Demand For Skilled Workers: New Evidence From U.S. Manufacturing

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  • AEKAPOL CHONGVILAIVAN
  • JUNG HUR
  • YOHANES E. RIYANTO

Abstract

Existing studies on the impact of outsourcing on relative wages and the demand for skilled workers mainly focus on aggregate outsourcing, in which imported intermediate inputs are used as a proxy. We depart from the existing studies by focusing on various types of outsourcing based on the six‐digit NAICS U.S. manufacturing data. We show that downstream materials and service outsourcing are skill biased, whereas upstream materials outsourcing is not. We also produce other supplementary results pertaining to the impact of technology, different capital inputs on relative wages, and the demand for skilled workers. (JEL C33, F14, F15)

Suggested Citation

  • Aekapol Chongvilaivan & Jung Hur & Yohanes E. Riyanto, 2009. "Outsourcing Types, Relative Wages, And The Demand For Skilled Workers: New Evidence From U.S. Manufacturing," Economic Inquiry, Western Economic Association International, vol. 47(1), pages 18-33, January.
    • Handle: RePEc:bla:ecinqu:v:47:y:2009:i:1:p:18-33
    DOI: 10.1111/j.1465-7295.2008.00131.x
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    References listed on IDEAS

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    2. André Varella Mollick & Jorge Ibarra-Salazar, 2013. "Productivity Effects on the Wage Premium of Mexican Maquiladoras," Economic Development Quarterly, , vol. 27(3), pages 208-220, August.

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    More about this item

    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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