This paper investigates the effects of services offshoring on wages using individual level data combined with industry … information on offshoring. Our results show that services offshoring affects the real wage of low and medium skilled individuals … negatively. By contrast, skilled workers benefit from services offshoring in terms of higher real wages. Hence, offshoring has …

This paper investigates the effects of services offshoring on wages using individual level data combined with industry … information on offshoring. Our results show that services offshoring affects the real wage of low and medium skilled individuals … negatively. By contrast, skilled workers benefit from services offshoring in terms of higher real wages. Hence, offshoring has …

Outsourcing of labor intensive activities challenges the welfare state and undermines the protection of low … results are: (i) Social insurance props up wages, leading to more outsourcing and unskilled unemployment. (ii) Redistribution … from the skilled to the working poor acts as a wage subsidy to unskilled workers, thereby reducing gross wages, outsourcing …