-based explanation by focussing on international outsourcing. In a recent paper, Feenstra and Hanson (1996) estimate the effect of … international outsourcing on wage inequality in the US. This paper extends the FH approach using more detailed definitions of import … penetration and outsourcing as well as data for UK manufacturing industries for the period 1982-1996. The econometric results …

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 …