Offshoring, tasks, and the skill-wage pattern

Daniel Baumgarten, Ingo Geishecker and Holger Görg

European Economic Review, 2013, vol. 61, issue C, 132-152

Abstract: The paper investigates the relationship between offshoring, wages, and the occupational task profile using rich individual-level panel data. Our main results suggest that, when only considering within-industry changes in offshoring, we identify a moderate wage reduction due to offshoring for low-skilled workers, though wage effects in relation to the task profile of occupations are not estimated with sufficient precision. However, when allowing for cross-industry effects of offshoring, i.e. allowing for labor mobility across industries, negative wage effects of offshoring are quite substantial and depend strongly on the task profile of workers' occupations. A higher degree of interactivity and, in particular, non-routine content effectively shields workers against the negative wage impact of offshoring.

Keywords: Tasks; Offshoring; Outsourcing; Skills; Wages (search for similar items in EconPapers)
JEL-codes: F1 F2 J3 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (101)

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Related works:
Working Paper: Offshoring, tasks, and the skill-wage pattern (2013)
Working Paper: Offshoring, tasks, and the skill-wage pattern (2010)
Working Paper: Offshoring, Tasks, and the Skill-Wage Pattern (2010)
Working Paper: Offshoring, Tasks, and the Skill-Wage Pattern (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:eecrev:v:61:y:2013:i:c:p:132-152

DOI: 10.1016/j.euroecorev.2013.03.007

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