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The effects of offshoring on wages: a meta-analysis

Matilde Cardoso, Pedro Cunha Neves (), Oscar Afonso and Elena Sochirca
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Matilde Cardoso: Universidade do Porto
Pedro Cunha Neves: Universidade da Beira Interior, and CEFAGE-UBI
Oscar Afonso: Universidade do Porto, and CEFUP
Elena Sochirca: Universidade da Beira Interior, NECE, and NIPE

Review of World Economics (Weltwirtschaftliches Archiv), 2021, vol. 157, issue 1, No 6, 149-179

Abstract: Abstract Offshoring, either as FDI or offshore outsourcing, is a phenomenon of increasing importance that has been widely studied in the economics literature. Studies analysing the impact of offshoring on the labour market report divergent results. In this paper we develop a meta-analysis of the empirical literature that estimates the effect of offshoring on wages. We find that, after correcting for the presence of publication bias, the average effect is not significantly different from zero in either the origin or the destination countries. We also find that the wage impact of offshoring depends on methodological characteristics of the primary studies, such as the way offshoring is measured, the nature of goods/services that are offshored, the workers’ skill level, the unit of analysis, the structure of the data, and the estimation technique.

Keywords: Offshoring; Foreign direct investment; Offshore outsourcing; Wages; Meta-analysis (search for similar items in EconPapers)
JEL-codes: E24 F16 F23 F66 (search for similar items in EconPapers)
Date: 2021
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DOI: 10.1007/s10290-020-00385-z

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