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International Outsourcing and German Manufacturing Wages
Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 125 (2005), Iss. 1 : pp. 87–95
This paper investigates the link between international outsourcing and wages utilising the German Socio-Economic Panel (SOEP) and combining it with industry-level information on industries' outsourcing activities. lnstead of following the literature by differentiating between manual and non-manual workers, I also utilise data on educational attainment in order to distinguish between skill categories. While outsourcing proves to be statistically insignificant for manual and non-manual workers' wages, I find evidence that when applying a more accurate skill definition, a one percentage point increase in our outsourcing measure reduces the real wage for low-skilled workers by 1.7 percent while it increases real wages for high-skilled workers by 2.2 percent.
Table of Contents
|Geishecker: International Outsourcing and German Manufacturing Wages||87|
|2. The Empirical Model||88|