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International Outsourcing and the Skill Structure of Labour Demand in the United Kingdom

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Author Info
Hijzen, Alexander (GEP, University of Nottingham)
Görg, Holger () (GEP, University of Nottingham, DIW Berlin and IZA Bonn)
Hine, Robert C. (GEP, University of Nottingham)

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Abstract

This paper investigates empirically the link between international outsourcing and the skill structure of labour demand in the United Kingdom. It is the first detailed study of this issue for the UK. Outsourcing is calculated using import-use matrices of input-output tables for manufacturing industries for the period 1982 to 1996. Estimating a system of variable factor demands, our main results show that international outsourcing has had a strong negative impact on the demand for unskilled labour. Hence, international outsourcing is an important component in explanations of the changing skill structure of manufacturing industries in the United Kingdom.

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Publisher Info
Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 1249.

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Length: 34 pages
Date of creation: Aug 2004
Date of revision:
Handle: RePEc:iza:izadps:dp1249

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Related research
Keywords: Outsourcing; fragmentation; trade; wages; skill-biased technological change;

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Find related papers by JEL classification:
F14 - International Economics - - Trade - - - Country and Industry Studies of Trade
J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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References listed on IDEAS
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