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

Author

Listed:
  • Peter Egger

    (WIFO)

  • Robert Stehrer

Abstract

The paper analyses the effects of international fragmentation in terms of intermediate goods trade on the dynamics of skill-specific real wage bills in manufacturing of three Central and East European countries (Hungary, Poland, the Czech Republic). Both intermediate goods exports and imports of the CEECs exhibit a positive impact on the unskilled workers' wage bill. Since 1993, intermediate goods trade with the European Union alone has accounted for a reduction of about 58 per cent of the predicted annual change in the skilled-to-unskilled wage bill ratio in Hungary's manufacturing. The corresponding contribution was 31 per cent in the Czech Republic and 30 per cent in Poland.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Peter Egger & Robert Stehrer, 2001. "International Outsourcing and the Skill-Specific Wage Bill in Eastern Europe," WIFO Working Papers 151, WIFO.
    • Handle: RePEc:wfo:wpaper:y:2001:i:151
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    File URL: https://www.wifo.ac.at/wwa/pubid/20422
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    Keywords

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

    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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