Does Outsourcing to Central and Eastern Europe really threaten manual workers’ jobs in Germany?
نویسنده
چکیده
This paper analyses how international outsourcing has affected the relative demand for manual workers in Germany during the 1990s. In contrast to previous empirical work, we combine trade and input output data to disentangle international outsourcing and trade in final goods more accurately and differentiate between the effects of outsourcing in different geographic regions. Accounting for endogeneity of international outsourcing by applying GMM techniques we find a significant negative effect of international outsourcing towards Central and Eastern Europe that in its magnitude is comparable to the skill biased effect of technological progress.
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