Offshoring and Occupational Wages: Some empirical evidence

Arne Bigsten (), Dick Durevall and Farzana Munshi ()
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Dick Durevall: Department of Economics, School of Business, Economics and Law, Göteborg University, Postal: Box 640, SE 40530 GÖTEBORG

No 312, Working Papers in Economics from University of Gothenburg, Department of Economics

Abstract: Offshoring has changed the pattern of international competition; labor in specific occupations rather than whole firms and sectors are now facing competition. Accordingly, wages in offshorable occupations are affected in new ways. In this paper we investigate the effects of offshoring of electronically traded services on relative occupational wages in 13 countries in the 1990-2003 period. Our findings show that increased exports of IT-related services lead to higher relative wages in offshorable occupations, whereas increased imports of such service reduce them. There is also some evidence that the impact of offshoring on relative wages is larger the lower the level GDP per capita.

Keywords: Offshoring; globalization; occupational wages; service trade (search for similar items in EconPapers)
JEL-codes: F15 F16 J31 (search for similar items in EconPapers)
Pages: 29 pages
Date: 2008-08-05
New Economics Papers: this item is included in nep-bec, nep-int and nep-lab
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http://hdl.handle.net/2077/10640 (text/html)

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Journal Article: Offshoring and occupational wages: Some empirical evidence (2012)
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