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Offshoring and Occupational Wages: Some empirical evidence

Journal article
Authors Arne Bigsten
Dick Durevall
Farzana Munshi
Published in Journal of International Trade and Economic Development
Volume 21
Issue 2
Pages 253-269
ISSN 0963-8199
Publication year 2012
Published at Gothenburg Centre for Globalization and Development (GCGD)
Department of Economics
Pages 253-269
Language en
Keywords offshoring; globalization; service trade; wages; outsourcing
Subject categories Economics


Offshoring has changed the pattern of international competition; labor in specific occupations rather than whole firms and sectors are now facing competition. Accordingly, wages in offshorable occupations are affected in new ways. In this article, we investigate the effects of offshoring on relative occupational wages in 13 countries for 1990–2003. Our findings show that offshoring competiveness is associated with higher relative wages in offshorable occupations, and that export growth of IT-related services leads to higher relative wages in offshorable occupations, whereas import growth of such services reduces them.

Page Manager: Webmaster|Last update: 9/11/2012

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