International Outsourcing and German Manufacturing Wages

Ingo Geishecker

Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, 2005, vol. 125, issue 1, 87-95

Abstract: This paper investigates the link between international outsourcing and wages utilising the German Socio-Economic Panel (SOEP) and combining it with industry-level information on industries' outsourcing activities. Instead of following the literature by differentiating between manual and non-manual workers, I also utilise data on educational attainment in order to distinguish between skill categories. While outsourcing proves to be statistically insignificant for manual and non-manual workers' wages, I find evidence that when applying a more accurate skill definition, a one percentage point increase in our outsourcing measure reduces the real wage for low-skilled workers by 1.7 percent while it increases real wages for high-skilled workers by 2.2 percent.

JEL-codes: F16 J31 L24 (search for similar items in EconPapers)
Date: 2005
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