Resource title

Specialization, Outsourcing and Wages

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Resource description

This paper studies the impact of outsourcing on individual wages. In contrast to the standard approach in the literature, we focus on domestic outsourcing as well as foreign outsourcing. By using a simple theoretical model, we argue that, if outsourcing is associated with specialization gains arising from an increase in the extent of the market for intermediate goods, domestic outsourcing tends to increase wages for both unskilled and skilled labor. We use a panel data set of workers in Danish manufacturing industries to show that domestic and foreign outsurcing affect wages as predicted by the theory.Keywords: Outsourcing, Comparative advantage, Specialization, Wages.JEL Classification: F16, J31, C23.

Resource author

Jakob Roland Munch, Jan Rose Skaksen

Resource publisher

Resource publish date

Resource language

eng

Resource content type

application/pdf

Resource resource URL

http://hdl.handle.net/10398/7522

Resource license

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