Services offshoring and wages: evidence from micro data

Publication type

Research Paper

Series Number

3593

Series

IZA Discussion Papers

Authors

Publication date

June 1, 2008

Abstract:

This paper investigates the effects of services offshoring on wages using individual level data combined with industry information on offshoring. Our results show that services offshoring affects the real wage of low and medium skilled individuals negatively. By contrast, skilled workers benefit from services offshoring in terms of higher real wages. Hence, offshoring has contributed to a widening of the wage gap between skilled and less skilled workers. This result is obtained while controlling for individual and sectoral observed and unobserved heterogeneity. In particular, our empirical model also controls for the impact of technological change and offshoring of materials.

Subjects

Link

- https://www.econstor.eu/dspace/bitstream/10419/34759/1/573772940.pdf

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