Do Labor Market Institutions Matter? Micro-Level Wage Effects of International Outsourcing in Three European Countries

25 Pages Posted: 3 Dec 2007

See all articles by Holger Görg

Holger Görg

University of Kiel; Kiel Institute for the World Economy

Ingo Geishecker

Free University of Berlin (FUB) - Department of Business and Economics

Jakob Roland Munch

University of Copenhagen - Department of Economics; Center for Economic and Business Research (CEBR)

Date Written: December 2007

Abstract

This paper studies the impact of outsourcing on individual wages in three European countries with markedly different labor 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 shows that there are some interesting differences in the effect of outsourcing across countries. We discuss some possible reasons for these differences based on labor market institutions.

Keywords: International outsourcing, individual wages, labour market institutions

JEL Classification: F16, J31, C23

Suggested Citation

Gorg, Holger and Geishecker, Ingo and Munch, Jakob Roland, Do Labor Market Institutions Matter? Micro-Level Wage Effects of International Outsourcing in Three European Countries (December 2007). Available at SSRN: https://ssrn.com/abstract=1048402 or http://dx.doi.org/10.2139/ssrn.1048402

Holger Gorg (Contact Author)

University of Kiel ( email )

Olshausenstr. 40
D-24118 Kiel, Schleswig-Holstein 24118
Germany

Kiel Institute for the World Economy ( email )

P.O. Box 4309
Kiel, Schleswig-Hosltein D-24100
Germany

Ingo Geishecker

Free University of Berlin (FUB) - Department of Business and Economics ( email )

Boltzmannstrasse 20
D-14195 Berlin, 14195
Germany

Jakob Roland Munch

University of Copenhagen - Department of Economics ( email )

Øster Farimagsgade 5
Bygning 26
1353 Copenhagen K.
Denmark
+45 35323019 (Phone)
+45 35323000 (Fax)

HOME PAGE: http://www.econ.ku.dk/Faculty_And_Staff/showID.asp?profile_id=1260

Center for Economic and Business Research (CEBR)

Porcelaenshaven, Bldg 65
DK-2000 Frederiksberg
Denmark

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