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Specialization, outsourcing and wages
[journal article]
Abstract 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 ... view more
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.... view less
Keywords
outsourcing
Classification
Business Administration
Labor Market Research
Free Keywords
Comparative advantage; Specialization; Wages; F16; J31; C23
Document language
English
Publication Year
2009
Page/Pages
p. 57-73
Journal
Review of World Economics, 145 (2009) 1
DOI
https://doi.org/10.1007/s10290-009-0009-2
Status
Postprint; peer reviewed
Licence
PEER Licence Agreement (applicable only to documents from PEER project)