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