This paper attempts to explain the level and dynamics of firm level productivity through a model of convergence, for UK … service sector firms over the period 1988 to 1998. Firms of different characteristics have different productivity levels and … firm and weak evidence that it is related to firm age. Given the high initial productivity of foreign owned firms we …

's productivity. We compare outsourcing in domestic with foreign-owned establishments. Our empirical results suggest that high wages …-owned firms have higher levels of outsourcing than domestic establishments. In the productivity analysis we find that an … establishment's outsourcing intensity is positively related to its labour productivity and total factor productivity growth and that …

target?s development of wages for skilled and unskilled workers. We pay particular attention to identifying the causal effect …