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Individual Earnings, International Outsourcing and Technological Change

Chiara Broccolini (), Alessia Lo Turco (), Andrea Presbitero and Stefano Staffolani ()
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Chiara Broccolini: Università Politecnica delle Marche

No 242, Development Working Papers from Centro Studi Luca d'Agliano, University of Milano

Abstract: The aim of this paper is to empirically evaluate the relative effects of international outsourcing of materials and services and of ICT capital deepening on wage inequality between blue and white collars in the Italian manufacturing industry during the period 1985-1999. We merge an administrative data set on workers\' wages and individual characteristics with data on imported inputs from Italian input-output tables and other sector-level variables. Our results confirm that both material and service outsourcing widen the skilled/unskilled wage gap while ICT capital deepening positively affects real wages regardless of the worker\'s status. However, important differences emerge when the overall sample is split between traditional and innovative sectors.

Keywords: International Outsourcing; ICT; Wage Inequality (search for similar items in EconPapers)
JEL-codes: C23 F16 J31 O3 (search for similar items in EconPapers)
Pages: 24
Date: 2008-04-15
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