Specialization, outsourcing and wages

2208 . doc International Services Outsourcing , Wages and Innovation

Theories of international outsourcing predict rises in firms’ innovation rates mediated through lower wages per worker. Consistent with the predictions of Glass and Saggi (2001), we find a tradeoff between wages and innovation. However, we do not find that the proportion of internationally outsourced service inputs reduces but rather increases a firm’s wage per worker, a result most likely driv...

How international outsourcing drives up Eastern European wages

This paper analyzes the effects of intermediate goods trade on the development of real wages in Central and Eastern European manufacturing. The empirical findings show that world exports in intermediate goods of the CEEC exhibit a negative impact on wages, and imports a positive one. Since 1993, intermediate goods trade between the EU and the CEEC accounted for an increase in wages being most p...

Does Outsourcing Reduce Wages in the Low-Wage Service Occupations? Evidence from Janitors and Guards

Outsourcing of labor services grew substantially during the 1980s and 1990s and was associated with lower wages, fewer benefits, and lower rates of unionization. The authors focus on two occupations for which they can identify outsourcing in those two decades using industry and occupation codes: janitors and guards. Across a wide array of specifications, they find that the outsourcing wage pena...

Victims of Progress: Economic Integration, Specialization, and Wages for Unskilled Labor

Specialization, Integration, and Multi-sourcing: A study of Large IT Outsourcing Projects

IT outsourcing has three broad forms: (i) Single-Sourcing, where the client outsources to one primary vendor, (ii) Single-Sourcing with subcontracting , where the primary vendor involves other/secondary vendors in the project, and (iii) Multi-Sourcing, where the client outsources to multiple primary vendors. Using a dataset of large IT outsourcing contracts from the SCD database with 22,031 lar...