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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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    Cited by:

    1. Carstensen, Kai & Toubal, Farid, 2004. "Foreign direct investment in Central and Eastern European countries: a dynamic panel analysis," Journal of Comparative Economics, Elsevier, vol. 32(1), pages 3-22, March.
    2. Florentina Constantin & Giovanna Giusti & Giuseppe Tattara, 2010. "Strategies of Italian Firms in Romania: Evidence from Selected Case Studies," Transition Studies Review, Springer;Central Eastern European University Network (CEEUN), vol. 16(4), pages 829-847, February.
    3. Kaminski, Bartlomiej & Ng, Francis, 2004. "Romania's integration into European markets : implications for sustainability of the current export boom," Policy Research Working Paper Series 3451, The World Bank.
    4. Piero Esposito & Robert Stehrer, 2012. "The Effects of High-tech Capital, FDI and Outsourcing on Demand for Skills in West and East," Chapters,in: Industrial Productivity in Europe, chapter 13 Edward Elgar Publishing.
    5. Özlem Onaran & Engelbert Stockhammer, 2006. "The effect of FDI and foreign trade on wages in the Central and Eastern European Countries in the post-transition era: A sectoral analysis," Department of Economics Working Papers wuwp094, Vienna University of Economics and Business, Department of Economics.
    6. Florian Dorn & Clemens Fuest & Niklas Potrafke, 2017. "Globalisation and Income Inequality Revisited," European Economy - Discussion Papers 2015 - 056, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    7. Aleksandra Parteka & Joanna Wolszczak-Derlacz, 2015. "Integrated sectors - diversified earnings: the (missing) impact of offshoring on wages and wage convergence in the EU27," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 13(3), pages 325-350, September.
    8. Aleksandra Parteka, 2012. "Skilled-Unskilled Wage Gap Versus Evolving Trade And Labour Market Structures in the EU," Working Papers 1204, Instytut Rozwoju, Institute for Development.
    9. Giovanni S.F. Bruno & Rosario Crinò & Anna M. Falzoni, 2004. "Foreign Direct Investment, Wage Inequality, and Skilled Labor Demand in EU Accession Countries," Development Working Papers 188, Centro Studi Luca d'Agliano, University of Milano.
    10. Crinò, Rosario, 2012. "Imported inputs and skill upgrading," Labour Economics, Elsevier, vol. 19(6), pages 957-969.
    11. Özlem Onaran, 2007. "The effects of globalization on income distribution," Working Paper Reihe der AK Wien - Materialien zu Wirtschaft und Gesellschaft 100, Kammer für Arbeiter und Angestellte für Wien, Abteilung Wirtschaftswissenschaft und Statistik.
    12. Onaran, Ozlem & Stockhammer, Engelbert, 2008. "The effect of FDI and foreign trade on wages in the Central and Eastern European Countries in the post-transition era: A sectoral analysis for the manufacturing industry," Structural Change and Economic Dynamics, Elsevier, vol. 19(1), pages 66-80, March.
    13. Michael Landesmann & Robert Stehrer, 2009. "South-North Integration, Outsourcing and Skills," wiiw Research Reports 353, The Vienna Institute for International Economic Studies, wiiw.
    14. Alessia Lo Turco & Aleksandra Parteka, 2009. "The EU enlargement and domestic employment," Economics Bulletin, AccessEcon, vol. 29(3), pages 2202-2217.
    15. Alessia Lo Turco & Aleksandra Parteka, 2011. "The demand for skills and labour costs in partner countries," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 19(3), pages 611-637, July.
    16. Piero Esposito & Robert Stehrer, 2009. "The sector bias of skill-biased technical change and the rising skill premium in transition economies," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 36(3), pages 351-364, August.
    17. Konstantin Wacker, 2010. "The Influence of Trade with the EU-15 on Wages in the Czech Republic, Hungary, Poland, and Slovakia between 1997 and 2005," FIW Working Paper series 047, FIW.
    18. Hajnalka Tarjani, 2005. "Estimating some labour market implications of skill biased technology change and imports in Hungary," IEHAS Discussion Papers 0508, Institute of Economics, Centre for Economic and Regional Studies, Hungarian Academy of Sciences.

    More about this item

    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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