Journal article
Outsourcing and the Skilled-Unskilled Wage Gap
Economics Letters, Vol.118(2), pp.347-350
2013
Abstract
Within the context of a product variety model, this paper examines the impact of outsourcing of skill-intensive tasks on 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.
Details
- Title
- Outsourcing and the Skilled-Unskilled Wage Gap
- Authors
- Sajid Anwar (Author) - University of the Sunshine Coast - Faculty of Arts and Business
- Publication details
- Economics Letters, Vol.118(2), pp.347-350
- Publisher
- Elsevier BV
- Date published
- 2013
- DOI
- 10.1016/j.econlet.2012.11.024
- ISSN
- 0165-1765
- Copyright note
- Copyright © 2012. 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
- 99450221902621
- Output Type
- Journal article
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