Offshoring and occupational wages: Some empirical evidence

Arne Bigsten (), Dick Durevall and Farzana Munshi ()

The Journal of International Trade & Economic Development, 2012, vol. 21, issue 2, 253-269

Abstract: Offshoring has changed the pattern of international competition; labor in specific occupations rather than whole firms and sectors are now facing competition. Accordingly, wages in offshorable occupations are affected in new ways. In this article, we investigate the effects of offshoring on relative occupational wages in 13 countries for 1990--2003. Our findings show that offshoring competiveness is associated with higher relative wages in offshorable occupations, and that export growth of IT-related services leads to higher relative wages in offshorable occupations, whereas import growth of such services reduces them.

Date: 2012
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Working Paper: Offshoring and Occupational Wages: Some empirical evidence (2008)
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DOI: 10.1080/09638191003615612

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