This paper presents an empirical analysis of "outsourcing" using establishment level data for UK manufacturing … industries. We analyse an establishment's decision to outsource and the subsequent effects of outsourcing on the establishment …'s productivity. We compare outsourcing in domestic with foreign-owned establishments. Our empirical results suggest that high wages …

Our paper investigates the link between international outsourcing and wages utilising a large household panel and … combining it with industry level information on industries' outsourcing activities from input-output tables. By doing so we can … outsourcing has had a marked impact on wages. Distinguishing three skill categories we find evidence that outsourcing reduced the …