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

  • Peter Egger

    (University of Innsbruck, Austria)

  • Robert Stehrer

    (WIIW, Austria)

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. Copyright Blackwell Publishing Ltd 2003

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Article provided by Wiley Blackwell in its journal The World Economy.

Volume (Year): 26 (2003)
Issue (Month): 1 (January)
Pages: 61-72

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Handle: RePEc:bla:worlde:v:26:y:2003:i:1:p:61-72
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