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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