Journal article
International Outsourcing of Skill Intensive Tasks and Wage Inequality Economic Modelling
Economic Modelling, Vol.31(1), pp.590-597
2013
Abstract
Within the context of a product variety model, this paper examines the impact of international outsourcing of some skill intensive tasks on wage inequality. We consider four possibilities: long-run equilibrium where varieties of producer services are non-traded, long-run equilibrium where varieties of producer services are traded, short-run equilibrium where varieties of producer services are non-traded and short-run equilibrium where varieties of producer services are traded. It is shown that in each case, under certain conditions, international outsourcing can increase skilled-unskilled wage inequality. In the first three cases, outsourcing affects wage inequality directly as well as indirectly. In the short-run equilibrium, where varieties of producer services are traded, international outsourcing increases skilled-unskilled wage inequality only through an indirect channel. In the short-run equilibrium, where all goods are traded, the impact of outsourcing on wage inequality depends solely on the relative size of the income share of capital. Furthermore, in the long-run equilibrium, outsourcing increases the productivity of the industrial sector.
Details
- Title
- International Outsourcing of Skill Intensive Tasks and Wage Inequality Economic Modelling
- Authors
- Sajid Anwar (Author) - University of the Sunshine Coast - Faculty of Arts and BusinessS Sun (Author) - James Cook UniversityA Valadkhani (Author) - University of New England
- Publication details
- Economic Modelling, Vol.31(1), pp.590-597
- Publisher
- Elsevier BV, North-Holland
- Date published
- 2013
- DOI
- 10.1016/j.econmod.2012.12.027
- ISSN
- 0264-9993
- Copyright note
- Copyright © 2013. This manuscript version is made available under the CC-BY-NC-ND 4.0 license http://creativecommons.org/licenses/by-nc-nd/4.0/
- Organisation Unit
- School of Business and Creative Industries; Indigenous and Transcultural Research Centre; University of the Sunshine Coast, Queensland; USC Business School - Legacy
- Language
- English
- Record Identifier
- 99450249902621
- Output Type
- Journal article
Metrics
103 File views/ downloads
608 Record Views
InCites Highlights
These are selected metrics from InCites Benchmarking & Analytics tool, related to this output
- Collaboration types
- Domestic collaboration
- Web Of Science research areas
- Economics
UN Sustainable Development Goals (SDGs)
This output has contributed to the advancement of the following goals:
Source: InCites