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Do Labour Market Institutions Matter? Micro-Level Wage Effects of International Outsourcing in Three European Countries

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Listed:
  • Geishecker, Ingo

    (University of Göttingen)

  • Görg, Holger

    (Kiel Institute for the World Economy)

  • Munch, Jakob R.

    (University of Copenhagen)

Abstract

This paper studies the impact of outsourcing on individual wages in three European countries with markedly different labour market institutions: Germany, the UK and Denmark. To do so we use individual level data sets for the three countries and construct comparable measures of outsourcing at the industry level, distinguishing outsourcing by broad region. Estimating the same specification on different data show that there are some interesting differences in the effect of outsourcing across countries. We discuss some possible reasons for these differences based on labour market institutions.

Suggested Citation

  • Geishecker, Ingo & Görg, Holger & Munch, Jakob R., 2007. "Do Labour Market Institutions Matter? Micro-Level Wage Effects of International Outsourcing in Three European Countries," IZA Discussion Papers 3212, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp3212
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    More about this item

    Keywords

    labour market institutions; individual wages; international outsourcing;
    All these keywords.

    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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