Individual Earnings, International Outsourcing and Technological Change

Centro Studi Lica d'Agliano Development Studies Working Paper No. 242

24 Pages Posted: 13 Dec 2008

See all articles by Chiara Broccolini

Chiara Broccolini

affiliation not provided to SSRN

Alessia Lo Turco

Università Politecnica delle Marche - Faculty of Economics

Andrea Filippo Presbitero

Università Politecnica delle Marche - Department of Economics; Centre for Macroeconomics & Finance Research (CeMaFiR)

Stefano Staffolani

Università Politecnica delle Marche - Faculty of Economics

Date Written: April 2008

Abstract

The aim of this paper is to empirically evaluate the relative effects of international outsourcing of materials and services and of ICT capital deepening on wage inequality between blue and white collars in the Italian manufacturing industry during the period 1985-1999. We merge an administrative data set on workers' wages and individual characteristics with data on imported inputs from Italian input-output tables and other sector-level variables. Our results con firm that both material and service outsourcing widen the skilled/unskilled wage gap while ICT capital deepening positively affects real wages regardless of the worker's status. However, important differences emerge when the overall sample is split between traditional and innovative sectors.

Keywords: International Outsourcing, ICT, Wage Inequality

JEL Classification: F16, J31, C23, O3

Suggested Citation

Broccolini, Chiara and Lo Turco, Alessia and Presbitero, Andrea Filippo and Staffolani, Stefano, Individual Earnings, International Outsourcing and Technological Change (April 2008). Centro Studi Lica d'Agliano Development Studies Working Paper No. 242. Available at SSRN: https://ssrn.com/abstract=1313811 or http://dx.doi.org/10.2139/ssrn.1313811

Chiara Broccolini (Contact Author)

affiliation not provided to SSRN ( email )

No Address Available

Alessia Lo Turco

Università Politecnica delle Marche - Faculty of Economics ( email )

Piazzale Martelli, 8
60121 Ancona
Italy

Andrea Filippo Presbitero

Università Politecnica delle Marche - Department of Economics ( email )

Piazzale Martelli, 8
Ancona, AN 60121
Italy
+39 0712207074 (Phone)

HOME PAGE: http://sites.google.com/site/presbitero/

Centre for Macroeconomics & Finance Research (CeMaFiR) ( email )

Piazza Mirabello, 2
Milan, 20100
Italy

Stefano Staffolani

Università Politecnica delle Marche - Faculty of Economics ( email )

Piazzale Martelli, 8
60121 Ancona
Italy

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