Specialization, outsourcing and wages

Publikation: Bidrag til tidsskriftTidsskriftartikelfagfællebedømt

This paper studies the impact of outsourcing on individual wages. In contrast to the standard approach in the literature, we focus on domestic outsourcing as well as foreign outsourcing. We argue that if outsourcing is associated with specialization gains arising from an increase in the division of labor, domestic outsourcing tends to increase wages for both unskilled and skilled labor. We use a panel data set of workers in Danish manufacturing industries to show that domestic and foreign outsourcing affect wages as predicted.
OriginalsprogEngelsk
TidsskriftReview of World Economics
Vol/bind145
Udgave nummer1
Sider (fra-til)57-73
Antal sider17
ISSN1610-2878
DOI
StatusUdgivet - 2009

Bibliografisk note

JEL Classification: F16, J31, C23

ID: 11848564