Kiel Working Papers, Kiel Institute for World Economics
No 1434:
Services offshoring and wages: Evidence from micro data
Ingo Geishecker and Holger Görg
Abstract: This paper investigates the effects of services offshoring
on wages using individual level data combined with industry information on
offshoring. Our results show that services ofsshoring affects the real wage
of low and medium skilled individuals negatively. By contrast, skilled
workers benefit from services offshoring in terms of higher real wages.
Hence, offshoring has contributed to a widening of the wage gap between
skilled and less skilled workers. This result is obtained while controlling
for individual and sectoral observed and unobserved heterogeneity. In
particular, our empirical model also controls for the impact of
technological change and offshoring materials
Keywords: Services offshoring, individual wages; (follow links to similar papers)
JEL-Codes: F16,; J31,; C23; (follow links to similar papers)
16 pages, July 2008
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