Two Dimensions of Convergence: National and International Wage Adjustment Effects of Cross-border Outsourcing in Europe
The paper proposes a distinction between the two dimensions of convergence- within and between countries-when analyzing the impact of cross-border outsourcing on real wage rates in the EU-15 and the CEEC. In the CEEC, international outsourcing has not affected the adjustment of average real wage rates at the manufacturing industry level, but it has led to a closure of the gap within a typical EU economy. Between-country convergence is likewise fostered by cross-border outsourcing, supporting the hypothesis that outsourcing facilitates international factor price equalization. Copyright Blackwell Publishing Ltd 2004..
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Volume (Year): 12 (2004)
Issue (Month): 5 (November)
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