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Offshoring, Immigration, and the Native Wage Distribution

William Olney

No 2010-10, Department of Economics Working Papers from Department of Economics, Williams College

Abstract: This paper presents a simple model that examines the impact of offshoring and immigration on wages and tests these predictions using U.S. state-industry-year panel data. According to the model, the productivity effect causes offshoring to have a more positive impact on low-skilled wages than immigration, but this gap decreases with the workers' skill level. The empirical results confirm both of these predictions and thus present direct evidence of the productivity effect. Furthermore, the results provide important insight into how specific components of offshoring and immigration affect the wages of particular types of native workers.

Keywords: Offshoring; Outsourcing; Immigration; Productivity effect; Wages (search for similar items in EconPapers)
JEL-codes: F16 F22 J3 (search for similar items in EconPapers)
Pages: 36 pages
Date: 2008-07, Revised 2012-04
New Economics Papers: this item is included in nep-agr and nep-env
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Published in the Canadian Journal of Economics, 45(3): 830-856.

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Related works:
Journal Article: Offshoring, immigration, and the native wage distribution (2012) Downloads
Journal Article: Offshoring, immigration, and the native wage distribution (2012) Downloads
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