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

  • Peter Egger
  • Robert Stehrer

    ()

    (The Vienna Institute for International Economic Studies, wiiw)

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.

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File URL: http://www.wiiw.ac.at/international-outsourcing-and-the-skill-specific-wage-bill-in-eastern-europe-dlp-516.pdf
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Paper provided by The Vienna Institute for International Economic Studies, wiiw in its series wiiw Working Papers with number 17.

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Date of creation: Jul 2001
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Publication status: Published as wiiw Working Paper
Handle: RePEc:wii:wpaper:17
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