The Wage Effects of Offshoring: Evidence from Danish Matched Worker-Firm Data

S-Tier
Journal: American Economic Review
Year: 2014
Volume: 104
Issue: 6
Pages: 1597-1629

Score contribution per author:

2.011 = (α=2.01 / 4 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We employ data that match the population of Danish workers to the universe of private-sector Danish firms, with product-level trade flows by origin- and destination-countries. We document new stylized facts about offshoring and instrument for offshoring and exporting. Within job spells, offshoring increases (decreases) the high-skilled (low-skilled) wage; exporting increases the wages of all skill-types; the net wage-effect of trade varies substantially within the same skill-type; conditional on skill, the wage-effect of offshoring varies across task characteristics. We estimate the overall effects of offshoring on workers' present and future income streams by constructing pre-offshoring-shock worker-cohorts and tracking them over time.

Technical Details

RePEc Handle
repec:aea:aecrev:v:104:y:2014:i:6:p:1597-1629
Journal Field
General
Author Count
4
Added to Database
2026-01-26