The Wage Effects of Offshoring: Evidence from Danish Matched Worker-Firm Data

David Hummels, Rasmus J?rgensen, Jakob Munch and Chong Xiang

American Economic Review, 2014, vol. 104, issue 6, 1597-1629

Abstract: We employ data that match the population of Danish workers to the universe of private-sector Danish firms, with product-level trade flows by origin- and destination-countries. We document new stylized facts about offshoring and instrument for offshoring and exporting. Within job spells, offshoring increases (decreases) the high-skilled (low-skilled) wage; exporting increases the wages of all skill-types; the net wage-effect of trade varies substantially within the same skill-type; conditional on skill, the wage-effect of offshoring varies across task characteristics. We estimate the overall effects of offshoring on workers' present and future income streams by constructing pre-offshoring-shock worker-cohorts and tracking them over time.

JEL-codes: F14 F16 J24 J31 L24 (search for similar items in EconPapers)
Date: 2014
Note: DOI: 10.1257/aer.104.6.1597
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Citations: View citations in EconPapers (448)

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Working Paper: The Wage Effects of Offshoring: Evidence from Danish Matched Worker-Firm Data (2011)
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