Economics and Business Review

ISSN 2392-1641
e-ISSN 2450-0097

Poznań University of Economics - Poland

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Volume 2 (16) Number 3 pp. 99-120

Joanna Wolszczak-Derlacz1, Aleksandra Parteka2

1Gdańsk University of Technology, Faculty of Management and Economics, Gdańsk, Poland
2
Gdańsk University of Technology, Faculty of Management and Economics, Gdańsk, Poland

Quantifying wage effects of offshoring: import- versus export-based measures of production fragmentation

Abstract:

In this paper we examine the implications of international fragmentation of
production on wages in the light of recent methodological developments in offshoring
measurement. In particular, we compare the results stemming from two ways of quantifying
offshoring – the traditional one based on import statistics and the one obtained
from the decomposition of gross exports and input-output information.
In the empirical part of our study, we estimate the extended version of wage equation,
rooted in the Ricardian model of skills, tasks and technologies where skill specific
wages are explained by industry-specific measures of capital, skill supply and offshoring
indices. The analysis is performed for a large panel (40 countries, 1995–2011
and 13 manufacturing industries). The results of the FE setting indicate that regardless
the way offshoring is measured it is negatively associated with wages. However,
when the endogeneity is accounted for, this negative association is sustained only for
the export-based measures.

pub/2016_3_99.pdf Full text available in in Adobe Acrobat format:
http://www.ebr.edu.pl/volume16/issue3/2016_3_99.pdf
Keywords: wage, offshoring, input-output, export decomposition

DOI: 10.18559/ebr.2016.3.7

For citation:

MLA Wolszczak-Derlacz, Joanna, and Aleksandra Parteka. "Quantifying wage effects of offshoring: import- versus export-based measures of production fragmentation." Economics and Business Review EBR 16.3 (2016): 99-120. DOI: 10.18559/ebr.2016.3.7
APA Wolszczak-Derlacz, J., & Parteka, A. (2016). Quantifying wage effects of offshoring: import- versus export-based measures of production fragmentation. Economics and Business Review EBR 16(3), 99-120 DOI: 10.18559/ebr.2016.3.7
ISO 690 WOLSZCZAK-DERLACZ, Joanna, PARTEKA, Aleksandra. Quantifying wage effects of offshoring: import- versus export-based measures of production fragmentation. Economics and Business Review EBR, 2016, 16.3: 99-120. DOI: 10.18559/ebr.2016.3.7