Offshoring, Tasks, and the Skill-Wage Pattern

By D. Baumgarten, Ingo Geishecker, Holger Görg. Social Science Research Network, 2013

254 citations recorded by the source corpus.

The paper investigates the relationship between offshoring, wages, and the occupational task profile using rich individual-level panel data. Our main results suggest that, when only considering within-industry changes in offshoring, we identify a moderate wage reduction due to offshoring for low-skilled workers, though wage effects in relation to the task profile of occupations are not estimated with sufficient precision. However, when allowing for cross-industry effects of offshoring, i.e. allowing for labor mobility across industries, negative wage effects of offshoring are quite substantial and depend strongly on the task profile of workers’ occupations. A higher degree of interactivity and, in particular, non-routine content effectively shields workers against the negative wage impact of offshoring.

Subfields: Economics and Econometrics, Management Information Systems

View Paper: https://www.semanticscholar.org/paper/47f6dade43c29fa286130bc462faa4acec7979c4

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In Economics and Econometrics

Citations in the corpus

Offshoring and Labor Markets (2018, background): “This issue is addressed in Baumgarten, Geishecker, and Görg (2013), or BGG (2013), who study how the wage effects of offshoring vary with skill and occupational characteristics during 1991–2006.”