International Outsourcing and the Skill-Specific Wage Bill in Eastern Europe

Peter Egger and Robert Stehrer

No 17, wiiw Working Papers from The Vienna Institute for International Economic Studies, wiiw

Abstract: The paper analyses the effects of international fragmentation in terms of intermediate goods trade on the dynamics of skill-specific real wage bills in manufacturing of three Central and East European countries (Hungary, Poland, the Czech Republic). Both intermediate goods exports and imports of the CEECs exhibit a positive impact on the unskilled workers' wage bill. Since 1993, intermediate goods trade with the European Union alone has accounted for a reduction of about 58 per cent of the predicted annual change in the skilled-to-unskilled wage bill ratio in Hungary's manufacturing. The corresponding contribution was 31 per cent in the Czech Republic and 30 per cent in Poland.

Keywords: international outsourcing; wage effects; panel econometrics (search for similar items in EconPapers)
JEL-codes: C33 F14 F15 F16 F40 (search for similar items in EconPapers)
Date: 2001-07
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Citations: View citations in EconPapers (6)

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Related works:
Journal Article: International Outsourcing and the Skill–Specific Wage Bill in Eastern Europe (2003)
Working Paper: International Outsourcing and the Skill-Specific Wage Bill in Eastern Europe (2001)
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