Wage effects of U.S. service offshoring by skills and tasks

Julia Püschel

No 107, FIW Working Paper series from FIW

Abstract: In this paper, I estimate the impact of service offshoring on the real wages of U.S. workers by controlling for workers’ skill levels and the offshoring susceptibility of different tasks. Matching individual-level wage data with input-output tables over the period from 2006 to 2009, I am further able to account for unobservable individual-level heterogeneity. The results from a Mincerian wage regression indicate that within skill groups, the impact of service offshoring on real wages depends on the task content of the respective occupation. The real wages of medium- and high-skilled workers employed in the least offshorable occupations were positively affected by service offshoring. However, within the groups of medium- and high-skilled workers, service offshoring negatively affected the real wage of the most tradable occupations.

Keywords: Offshoring; services; tasks; wages (search for similar items in EconPapers)
JEL-codes: F14 F16 F20 J31 (search for similar items in EconPapers)
Pages: 30
Date: 2013-03
New Economics Papers: this item is included in nep-lab and nep-lma
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Persistent link: https://EconPapers.repec.org/RePEc:wsr:wpaper:y:2013:i:107

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