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Wage effects of U.S. service offshoring by skills and tasks

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  • Julia Püschel

Abstract

In this paper, I estimate the impact of service offshoring on the real wages of U.S. workers by controlling for workers’ skill levels and the offshoring susceptibility of different tasks. Matching individual-level wage data with input-output tables over the period from 2006 to 2009, I am further able to account for unobservable individual-level heterogeneity. The results from a Mincerian wage regression indicate that within skill groups, the impact of service offshoring on real wages depends on the task content of the respective occupation. The real wages of medium- and high-skilled workers employed in the least offshorable occupations were positively affected by service offshoring. However, within the groups of medium- and high-skilled workers, service offshoring negatively affected the real wage of the most tradable occupations.

Suggested Citation

  • Julia Püschel, 2013. "Wage effects of U.S. service offshoring by skills and tasks," FIW Working Paper series 107, FIW.
    • Handle: RePEc:wsr:wpaper:y:2013:i:107
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    More about this item

    Keywords

    Offshoring; services; tasks; wages;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • 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
    • F20 - International Economics - - International Factor Movements and International Business - - - General

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