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Offshoring, immigration, and the native wage distribution

  • William W. Olney

This paper presents a simple model that examines the impact of 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 offshoring and immigration affect the wages of particular types of native workers.

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Article provided by Canadian Economics Association in its journal Canadian Journal of Economics.

Volume (Year): 45 (2012)
Issue (Month): 3 (August)
Pages: 830-856

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Handle: RePEc:cje:issued:v:45:y:2012:i:3:p:830-856
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  1. JunJie Wu, 2000. "Slippage Effects of the Conservation Reserve Program," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(4), pages 979-992.
  2. Cooper, Joseph C. & Osborn, Tim, 1998. "The effect of rental rates on the extension of Conservation Reserve Program contracts," MPRA Paper 24781, University Library of Munich, Germany.
  3. Silvia Secchi & Bruce A. Babcock, 2007. "Impact of High Crop Prices on Environmental Quality: A Case of Iowa and the Conservation Reserve Program," Center for Agricultural and Rural Development (CARD) Publications 07-wp447, Center for Agricultural and Rural Development (CARD) at Iowa State University.
  4. Michael J. Roberts & Ruben N. Lubowski, 2007. "Enduring Impacts of Land Retirement Policies: Evidence from the Conservation Reserve Program," Land Economics, University of Wisconsin Press, vol. 83(4), pages 516-538.
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