Do Labor Market Institutions Matter? Micro-Level Wage Effects of International Outsourcing in Three European Countries
25 Pages Posted: 3 Dec 2007
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: Suggested Citation
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