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International Outsourcing and the Skill–Specific Wage Bill in Eastern Europe

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  • Peter Egger
  • Robert Stehrer

Abstract

This paper analyses the effects of international fragmentation in terms of intermediate goods trade on the dynamics of the skilled–to–unskilled labour wage bill ratio in 14 manufacturing industries of the Czech Republic, Hungary and Poland. Both intermediate goods exports and imports of the CEEC exhibit a positive impact on the wage bill ratio. Since 1993, intermediate goods trade with the EU alone has accounted for a considerable reduction of the predicted annual change in the skilled–to–unskilled wage bill ratio in the three CEEC.

Suggested Citation

  • 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.
    • Handle: RePEc:bla:worlde:v:26:y:2003:i:1:p:61-72
    DOI: 10.1111/1467-9701.00510
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    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
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • F40 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - General

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