Services, Offshoring and Wages: Evidence from Micro Data
Kiel Institute for the World Economy; Institute for the Study of Labor (IZA)
July, 17 2008
IZA Discussion Paper No. 2008/22
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 offshoring 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 of materials.
Number of Pages in PDF File: 18
Keywords: services offshoring, individual wages
JEL Classification: F16, J31, C23working papers series
Date posted: July 17, 2008
© 2013 Social Science Electronic Publishing, Inc. All Rights Reserved.
This page was processed by apollo6 in 0.391 seconds