IDEAS home Printed from https://ideas.repec.org/a/ris/integr/0216.html
   My bibliography  Save this article

Global Sourcing and Relative Wages with A Nontradable Good

Author

Listed:
  • Choi, Yong-Yil

    () (Hansung University)

Abstract

In this paper I introduce a new concept of a global sourcing economy and then investigate the effects of global sourcing on relative wages in a general equilibrium model. From the model I derive the theoretical relative wage equations that show different predictions compared with the existing outsourcing literature. Global sourcing has a negative association with the relative wage of skilled labor to less skilled labor within tradable industry, while it is positively associated with the relative wage of skilled labor to less skilled labor within non-tradable industry. This result is contrasted with the notion that outsourcing is positively correlated with the relative demand for skilled labor. Another finding is that the size of the share of mobile labor used to produce non-traded goods plays a key role in deciding the magnitude of global sourcing effect on the wage inequality within nontradable industry and hence the overall wage inequality.

Suggested Citation

  • Choi, Yong-Yil, 2002. "Global Sourcing and Relative Wages with A Nontradable Good," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 17, pages 710-723.
  • Handle: RePEc:ris:integr:0216
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    More about this item

    Keywords

    Global Sourcing; Relative Wages; Economies of Scale; Nontradable Industry;

    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ris:integr:0216. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jong-Eun Lee). General contact details of provider: http://edirc.repec.org/data/desejkr.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.