Services Offshoring and Wages: Evidence from Micro Data

Ingo Geishecker () and Holger Görg ()
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Ingo Geishecker: University of Göttingen

No 3593, IZA Discussion Papers from Institute for the Study of Labor (IZA)

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.

Keywords: services offshoring; individual wages (search for similar items in EconPapers)
JEL-codes: F16 J31 C23 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-bec, nep-ifn, nep-int and nep-lab
Date: 2008-07
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Working Paper: Services offshoring and wages: Evidence from micro data (2008)
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