Outline

  • Abstract
  • Keywords
  • 1. Introduction
  • 2. Outsourcing in a Simple General Equilibrium Model
  • 3. Impact of Outsourcing on the Wage Gap
  • 4. Conclusion
  • Acknowledgements
  • References

رئوس مطالب

  • چکیده
  • کلید واژه ها
  • 1. مقدمه
  • 2. برون سپاری در یک مدل تعادل یا توازن عمومی ساده
  • 3. تاثیر برون سپاری بر شکاف دستمزد
  • 4. نتیجه گیری

Abstract

Within the context of a product variety model, this paper examines the impact of outsourcing of skill-intensive tasks on the skilled–unskilled wage gap. Outsourcing affects the wage gap through direct as well as indirect channels. While outsourcing decreases the effective wage of skilled workers in the services sector, owing to inter-sectoral labour mobility, its overall impact on the equilibrium skilled wage is positive. Through an increase in the size of external economies in the industrial sector, outsourcing can reduce the unskilled wage. In overall terms, outsourcing of skill-intensive tasks increases the skilled–unskilled wage gap.

Keywords: - - - -

Conclusions

While examining the determinants of the skilled–unskilled wage gap, a number of studies have highlighted the role of skilled biased technological change and trade liberalisation. This paper focuses on the role of international outsourcing. Based on the work of Batra and Beladi (2010), international outsourcing of skillintensive tasks is introduced in a Heckscher–Ohlin-type product variety model.

The model is used to investigate the impact of outsourcing on the skilled–unskilled wage gap, when all goods are traded. Outsourcing affects the skilled–unskilled wage gap through a direct as well as an indirect channel. The direct impact of outsourcing on the skilled wage is positive but the indirect impact on the unskilled wage can be ambiguous. The results presented in this paper suggest that, in overall terms, international outsourcing increases the skilled–unskilled wage gap.

This paper focuses only on the long-run equilibrium. It would be interesting to examine the properties of the short-run equilibrium.

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