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Kiel Institute for World Economics Kiel Working Papers, Kiel Institute for World Economics

No 1404:
Do labour market institutions matter? Micro-level wage effects of international outsourcing in three European countries

Ingo Geishecker, Holger Görg and Jakob Roland Munch

Abstract: This paper studies the impact of outsourcing on individual wages in three European countries with markedly different labour market institutions: Germany, the UK and Denmark. To do so we use individual level data sets for the three countries and construct comparable measures of outsourcing at the industry level, distinguishing outsourcing by broad region. Estimating the same specification on different data show that there are some interesting differences in the effect of outsourcing across countries. We discuss some possible reasons for these differences based on labour market institutions.

Keywords: International outsourcing, individual wages, labour market institutions; (follow links to similar papers)

JEL-Codes: F16,; J31,; C23; (follow links to similar papers)

21 pages, February 2008

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