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Type | Journal Article |
Scope | Discipline-based scholarship |
Title | Outsourcing and skill-specific employment in a small economy: Austria after the fall of the Iron Curtain |
Organization Unit | |
Authors |
|
Item Subtype | Original Work |
Refereed | Yes |
Status | Published in final form |
Language |
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Journal Title | Oxford Economic Papers |
Publisher | Oxford University Press |
Geographical Reach | international |
ISSN | 0030-7653 |
Volume | 55 |
Number | 4 |
Page Range | 625 - 643 |
Date | 2003 |
Abstract Text | We set up a model, in which firms in a small industrialized country outsource part of their production to a foreign economy, which is rich in low-skilled labour. We analyse, how a decline in trade costs affects outsourcing activities and the production structure in the small economy. A stimulation of cross-border outsourcing raises wage dispersion and, if labour markets are unionized, also the employment of high-skilled relative to low-skilled labour. Using a panel of Austrian industries, we find, first, that decreasing trade barriers - as observed after the fall of the Iron Curtain - indeed stimulate outsourcing to Central and Eastern Europe and the former Soviet Union, and, second, that outsourcing to these countries significantly shifts relative employment in favour of high-skilled labour. |
Digital Object Identifier | 10.1093/oep/55.4.625 |
PDF File | Download from ZORA |
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Additional Information | The accepted manuscript a pre-copy-editing, author-produced PDF of an article accepted for publication in Oxford Economic Papers following peer review. The definitive publisher-authenticated version (Oxford Economic Papers, 55(4):625-643) is available online at: http://oep.oxfordjournals.org/cgi/content/abstract/55/4/625. |