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International Outsourcing and German Manufacturing Wages

Author

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  • Ingo Geishecker

Abstract

This paper investigates the link between international outsourcing and wages utilising the German Socio-Economic Panel (SOEP) and combining it with industry-level information on industries' outsourcing activities. Instead of following the literature by differentiating between manual and non-manual workers, I also utilise data on educational attainment in order to distinguish between skill categories. While outsourcing proves to be statistically insignificant for manual and non-manual workers' wages, I find evidence that when applying a more accurate skill definition, a one percentage point increase in our outsourcing measure reduces the real wage for low-skilled workers by 1.7 percent while it increases real wages for high-skilled workers by 2.2 percent.

Suggested Citation

  • Ingo Geishecker, 2005. "International Outsourcing and German Manufacturing Wages," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 125(1), pages 87-95.
    • Handle: RePEc:aeq:aeqsjb:v125_y2005_i1_q1_p87-95
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    Cited by:

    1. MEJABI, Folorunsho & CHUKWUMA, Nnenna N. (Ph.D.) & UDU, Ama A(Ph.D.) & EKEOCHA, Hector Onyekachi & MANGTU, Dangnan Yohanna & OKHIRIA, Vincent Omozojie, 2024. "A Phenomenological Study of Outsourcing and Employee Relations Management in Lagos State, Nigeria," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(3), pages 1666-1684, March.
    2. Joachim Wagner, 2011. "Offshoring and firm performance: self-selection, effects on performance, or both?," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 147(2), pages 217-247, June.

    More about this item

    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • L24 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Contracting Out; Joint Ventures
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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