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International Outsourcing and German Manufacturing Wages

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Geishecker, I. International Outsourcing and German Manufacturing Wages. Journal of Contextual Economics – Schmollers Jahrbuch, 125(1), 87-95. https://doi.org/10.3790/schm.125.1.87
Geishecker, Ingo "International Outsourcing and German Manufacturing Wages" Journal of Contextual Economics – Schmollers Jahrbuch 125.1, 2005, 87-95. https://doi.org/10.3790/schm.125.1.87
Geishecker, Ingo (2005): International Outsourcing and German Manufacturing Wages, in: Journal of Contextual Economics – Schmollers Jahrbuch, vol. 125, iss. 1, 87-95, [online] https://doi.org/10.3790/schm.125.1.87

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International Outsourcing and German Manufacturing Wages

Geishecker, Ingo

Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 125 (2005), Iss. 1 : pp. 87–95

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Article Details

Geishecker, Ingo

Abstract

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.