Outsourcing and wage inequality in the home country

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Title: Outsourcing and wage inequality in the home country
Author: Hsu, Kuang-Chung
Abstract: This dissertation consists of three essays , which mainly talk about the wage inequality caused by outsourcing in the source countries like the US . The title of the first essay is ?Does Outsourcing Always Benefit Skilled Labor ? A Dynamic Product Cycle Model Approach . ? To understand why outsourcing did not cause wage inequality in the 1970s , I build a dynamic product cycle model with three kinds of labor inputs , scientists , white -collar workers , and blue -collar workers . First , only a homogenous representative producer exists in the model and then the paper allows for producer heterogeneity . According to my theoretical model , outsourcing can hurt skilled labor and does not cause wage inequality if outsourcing industries are absolutely blue -collar worker -intensive compared to non -outsourcing industries . Only scientists who conduct research and development always benefit from outsourcing . The second essay is an empirical work . The title is ?Outsourcing , Innovation , and Wage Inequality in the United States : What Happened to the Outsourcing Effect on Wage Inequality in the 1970s ? ? I find that , in the 1970s , white -collar workers ? wages deteriorated and blue -collar workers ? wages were non -decreasing . R &D workers always benefit from outsourcing . Except computers and high -technology capital , innovation expenditure on wage payment was an additional source of wage inequality in the 1980s . The last essay is named ?Beyond the Wage Inequality , the Impact of Outsourcing on the U .S . Labor Market . ? To understand the impact of outsourcing on employment , I examine laborers ? ages , gender ratio , years of education , and job tenure and retention rates . By employing the January Current Population Survey (CPS ) data , the National Bureau of Economic Research (NBER ) production data , and outsourcing data provided by Feenstra and Hanson , I find that outsourcing decreased blue -collar laborers ? average years of completed education ; increased the hiring of females into white -collar workers , and increased job stability of unskilled and skilled laborers in the 1980s . Thus , outsourcing did not take away unskilled laborers ? jobs but hindered new hiring of young unskilled workers
URI: http : / /hdl .handle .net /1969 .1 /ETD -TAMU -1281
Date: 2009-05-15

Citation

Outsourcing and wage inequality in the home country. Available electronically from http : / /hdl .handle .net /1969 .1 /ETD -TAMU -1281 .

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