Offshoring and occupational wages: some empirical evidence
Publisher© 2012 Journal of International Trade and Economic Development
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CitationBigsten, A., Durevall, D., & Munshi, F. (2012). Offshoring and occupational wages: Some empirical evidence. Journal of International Trade and Economic Development, 21(2), 253-269. doi:10.1080/09638191003615612
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 article, we investigate the effects of offshoring on relative occupational wages in 13 countries for 1990–2003. Our findings show that offshoring competiveness is associated with higher relative wages in offshorable occupations, and that export growth of IT-related services leads to higher relative wages in offshorable occupations, whereas import growth of such services reduces them.