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The biased pattern of global outsourcing

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In this paper, we examine the relationship between service offshoring and overall wage inequality in the U.S. labor market. Using data from CPS, EU KLEMS, and WIOD, we find that service offshoring shows a biased pattern on wage inequality in that it would affect largely a certain class who work in the service sector, not all sectors. Specifically, service offshoring would enlarge both the 90/10 and 90/50 wage gaps in the service sector. This implies that it can substitute in part for the middle-skill group in the service sector, reducing the relative skill premium of the corresponding workers.

Abstract

In this paper, we examine the relationship between service offshoring and overall wage inequality in the U.S. labor market. Using data from CPS, EU KLEMS, and WIOD, we find that service offshoring shows a biased pattern on wage inequality in that it would affect largely a certain class who work in the service sector, not all sectors. Specifically, service offshoring would enlarge both the 90/10 and 90/50 wage gaps in the service sector. This implies that it can substitute in part for the middle-skill group in the service sector, reducing the relative skill premium of the corresponding workers.

참고문헌 (10)

  1. Amiti, M., "Fear of Service Outsourcing: Is It Justified?", Economic Policy, 20(42), pp.308~348 (2005)
  2. Alternative Measures of Offshorability:A Survey Approach, "Blinder A.S.", National Bureau of Economic Research, ~, pp.NBER Working Paper 15287 (2009)
  3. Bound, J., "Changes in the Structure of Wages in the 1980s:An Evaluation of Alternative Explanations", American Economic Review, 82(3), pp.371~392 (1992)
  4. Crino, R., "Service Offshoring and White-Collar Employment", The Review of Economic Studies, 77(2), pp.595~632 (2010)
  5. Feenstra, R.C., "Globalization, Outsourcing and Wage Inequality", American Economic Review, 86, pp.240~245 (1996)
  6. Feenstra, R.C., "The Impact of Outsourcing and High-Technology Capital on Wages: Estimates for the United States, 1979-1990", The Quarterly Journal of Economics, 114(3), pp.907~941 (1999)
  7. Geishecker, I., "Service Offshoring and Wages: Evidence from Micro Data", Oxford Economic Papers, 65(1), pp.124~146 (2011)
  8. Gregory, M., "Jobs for the Skilled: How Technology, Trade and Domestic Demand Changed the Structure of UK Employment, 1979-1990", Oxford Economic Papers, 53(1), pp.20~46 (2001)
  9. Grossman, G.M., "Trading Tasks: A Simple Theory of Offshoring", American Economic Review, 98(5), pp.1978~1997 (2008)
  10. Hijzen A., "International Outsourcing and the Skill Structure and Labour Demand in the United Kingdom", Economic Journal, 115(506), pp.860~878 (2005)

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