Offshoring, wages, and heterogeneity

Sung-min Kim and Jin-tae Hwang

Japan and the World Economy, 2016, vol. 37-38, 65-72

Abstract: Considering heterogeneous responses by skill group to material and service offshoring, we examine the relationship between offshoring and the individual wages of workers in the U.S. labor market. We find that offshoring has been beneficial for high-skill workers but detrimental for middle- and low-skill workers. In particular, service offshoring, which has been widespread since 2000, has severely affected the labor market, compared to material offshoring.

Keywords: Material offshoring; Service offshoring; Skill groups; Heterogeneity; Labor market outcomes (search for similar items in EconPapers)
JEL-codes: F16 J23 J31 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:japwor:v:37-38:y:2016:i::p:65-72

DOI: 10.1016/j.japwor.2016.04.001

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