EconPapers    
Economics at your fingertips  
 

The Wage Effects of Offshoring: Evidence from Danish Matched Worker-Firm Data

David Hummels (), Rasmus Jørgensen, Jakob Munch and Chong Xiang ()

No 17496, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We estimate how offshoring and exporting affect wages by skill type. Our data match the population of Danish workers to the universe of private-sector Danish firms, whose trade flows are broken down by product and origin and destination countries. Our data reveal new stylized facts about offshoring activities at the firm level, and allow us to both condition our identification on within-job-spell changes and construct instruments for offshoring and exporting that are time varying and uncorrelated with the wage setting of the firm. We find that within job spells, (1) offshoring tends to increase the high-skilled wage and decrease the low-skilled wage; (2) exporting tends to increase the wages of all skill types; (3) the net wage effect of trade varies substantially across workers of the same skill type; and (4) conditional on skill, the wage effect of offshoring exhibits additional variation depending on task characteristics. We then track the outcomes for workers after a job spell and find that those displaced from offshoring firms suffer greater earnings losses than other displaced workers, and that low-skilled workers suffer greater and more persistent earnings losses than high-skilled workers.

JEL-codes: F16 (search for similar items in EconPapers)
Date: 2011-10
New Economics Papers: this item is included in nep-bec, nep-cis, nep-eec, nep-eur, nep-hme, nep-int, nep-lab and nep-lma
Note: ITI LS
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (32) Track citations by RSS feed

Published as David Hummels & Rasmus J?rgensen & Jakob Munch & Chong Xiang, 2014. "The Wage Effects of Offshoring: Evidence from Danish Matched Worker-Firm Data," American Economic Review, American Economic Association, vol. 104(6), pages 1597-1629, June.

Downloads: (external link)
http://www.nber.org/papers/w17496.pdf (application/pdf)

Related works:
Journal Article: The Wage Effects of Offshoring: Evidence from Danish Matched Worker-Firm Data (2014) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:nbr:nberwo:17496

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w17496

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().

 
Page updated 2021-08-31
Handle: RePEc:nbr:nberwo:17496