The wage effects of offshoring: Evidence from danish matched worker-firm data

American Economic Review

Volumn 104, Issue 6, 2014, Pages 1597-1629

  Hummels, David ^a   Jørgensen, Rasmus ^b   Munch, Jakob ^b   Xiang, Chong ^a  

^a PURDUE UNIVERSITY   (United States)

^b UNIVERSITY OF COPENHAGEN   (Denmark)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 84902365237     PISSN: 00028282     EISSN: None     Source Type: Journal    
DOI: 10.1257/aer.104.6.1597     Document Type: Article

References (50)

1. Abowd, John M., and Francis Kramarz. 1999. "The Analysis of Labor Markets Using Matched Employer-Employee Data." In Handbook of Labor Economics. Vol. 3, edited by Orley Ashenfelter and David Card, 2629-710. Amsterdam: Elsevier, North-Holland.
2. Abowd, John M., Francis Kramarz, and David N. Margolis. 1999. "High Wage Workers and High Wage Firms." Econometrica 67 (2): 251-333.
3. Amiti, Mary, and Donald R. Davis. 2012. "Trade, Firms, and Wages: Theory and Evidence." Review of Economic Studies 79 (1): 1-36.
4. Amiti, Mary, and Jozef Konings. 2007. "Trade Liberalization, Intermediate Inputs, and Productivity: Evidence from Indonesia." American Economic Review 97 (5): 1611-38.
5. Angrist, Joshua D., and Jorn-Steffen Pischke. 2009. Mostly Harmless Econometrics: An Empiricist's Companion. Princeton: Princeton University Press.
6. Autor, David H., David Dorn, and Gordon H. Hanson. 2013. "The China Syndrome: Local Labor Market Effects of Import Competition in the United States." American Economic Review 103 (6): 2121-68.
7. Autor, David H., Frank Levy, and Richard J. Murnane. 2003. "The Skill Content of Recent Technological Change: An Empirical Exploration." Quarterly Journal of Economics 118 (4): 1279-333. (Pubitemid 37445865)
8. Bernard, Andrew B., and J. Bradford Jensen. 1997. "Exporters, Skill Upgrading, and the Wage Gap." Journal of International Economics 42 (1-2): 3-31.
9. Bernard, Andrew B., and J. Bradford Jensen. 1999. "Exceptional Exporter Performance: Cause, Effect, or Both?" Journal of International Economics 47 (1): 1-25.
10. Bertrand, Marianne. 2004. "From the Invisible Handshake to the Invisible Hand? How Import Competition Changes the Employment Relationship." Journal of Labor Economics 22 (4): 723-65.
11. Botero, Juan C., Simeon Djankov, Rafael La Porta, Florencio Lopez-de-Silanes, and Andrei Shleifer. 2004. "The Regulation of Labor." Quarterly Journal of Economics 119 (4): 1339-82. (Pubitemid 39648562)
12. Burstein, Ariel, and Jonathan Vogel. 2011. "Globalization, Technology, and the Skill Premium: A Quantitative Analysis." National Bureau of Economic Research Working Paper 16459.
13. Bustos, Paula. 2011. "Trade Liberalization, Exports, and Technology Upgrading: Evidence on the Impact of MERCOSUR on Argentinian Firms." American Economic Review 101 (1): 304-40.
14. Caselli, Francesco, and Wilbur John Coleman, II. 2001. "Cross-Country Technology Diffusion: The Case of Computers." American Economic Review 91 (2): 328-35. (Pubitemid 33595770)
15. Dahl, Christian M., Daniel le Maire, and Jakob R. Munch. 2013. "Wage Dispersion and Decentralization of Wage Bargaining." Journal of Labor Economics 31 (3): 501-33.
16. Davis, Donald R., and James Harrigan. 2011. "Good Jobs, Bad Jobs, and Trade Liberalization." Journal of International Economics 84 (1): 26-36.
17. Ebenstein, Avraham, Ann Harrison, Margaret McMillan, and Shannon Phillips. Forthcoming. "Estimating the Impact of Trade and Offshoring on American Workers Using the Current Population Surveys." Review of Economics and Statistics.
18. Egger, Hartmut, and Udo Kreickemeier. 2009. "Firm Heterogeneity and the Labor Market Effects of Trade Liberalization." International Economic Review 50 (1): 187-216.
19. Feenstra, Robert C., and Gordon H. Hanson. 1996. "Foreign Investment, Outsourcing, and Relative Wages." In The Political Economy of Trade Policy: Papers in Honor of Jagdish Bhagwati, edited by Robert C. Feenstra, Gene M. Grossman, and Douglas A. Irwin, 89-227. Cambridge, MA: MIT Press
20. Feenstra, Robert C., and Gordon H. Hanson. 1997. "Foreign Direct Investment and Relative Wages: Evidence from Mexico's Maquiladoras." Journal of International Economics 42 (3-4): 371-93 (Pubitemid 127434086)
21. Feenstra, Robert C., and Gordon H. Hanson. 1999. "The Impact of Outsourcing and High-Technology Capital on Wages: Estimates for the United States, 1979-1990." Quarterly Journal of Economics 114 (3): 907-40.
22. Feenstra, Robert, and Gordon Hanson. 2003. "Global Production Sharing and Rising Inequality: A Survey of Trade and Wages." In Handbook of International Trade, edited by E. Kwan Choi and James Harrigan, 146-85. Malden, MA: Blackwell Publishing.
23. Frías, Judith A., David S. Kaplan, and Eric A. Verhoogen, 2009. "Exports and Wage Premia: Evidence from Mexican Employer-Employee Data." Unpublished.
24. Goldberg, Pinelopi Koujianou, Amit Kumar Khandelwal, Nina Pavcnik, and Petia Topalova. 2010. "Imported Intermediate Inputs and Domestic Product Growth: Evidence from India." Quarterly Journal of Economics 125 (4): 1727-67.
25. Goldberg, Pinelopi Koujianou, and Nina Pavcnik. 2007. "Distributional Effects of Globalization in Developing Countries." Journal of Economic Literature 45 (1): 39-82
26. Grossman, Gene, and Esteban Rossi-Hansberg. 2007. "The Rise of Offshoring: It's Not Wine for Cloth Anymore." In The New Economic Geography: Effects and Policy Implications, 59-102. A Symposium Sponsored by the Federal Reserve Bank of Kansas City. Jackson Hole, Wyoming.
27. Grossman, Gene M., and Esteban Rossi-Hansberg. 2008. "Trading Tasks: A Simple Theory of Offshoring." American Economic Review 98 (5): 1978-97.
28. Hanson, Gordon H., and Ann Harrison. 1999. "Trade Liberalization and Wage Inequality in Mexico." Industrial and Labor Relations Review 52 (2): 271-88.
29. Harrison, Ann, John McLaren, and Margaret S. McMillan. 2011. "Recent Perspectives on Trade and Inequality." Annual Review of Economics 3: 261-89.
30. Helpman, Elhanan, Oleg Itskhoki, and Stephen Redding. 2010. "Inequality and Unemployment in a Global Economy." Econometrica 78 (4): 1239-83.
31. Hsieh, Chang-Tai, and Keong T. Woo. 2005. "The Impact of Outsourcing to China on Hong Kong's Labor Market." American Economic Review 95 (5): 1673-87. (Pubitemid 43550750)
32. Hummels, David. 2007. "Transportation Costs and International Trade in the Second Era of Globalization." Journal of Economic Perspectives 21 (3): 131-54.
33. Hummels, David, Jun Ishii, and Kei-Mu Yi. 2001. "The Nature and Growth of Vertical Specialization in World Trade." Journal of International Economics 54 (1): 75-96. (Pubitemid 32546207)
34. Hummels, David, Rasmus Jørgensen, Jakob R. Munch, and Chong Xiang. 2011. "The Wage Effects of Offshoring: Evidence from Danish Matched Worker-Firm Data." National Bureau of Economic Research Working Paper 17496.
35. Hummels, David, Rasmus Jørgensen, Jakob Munch, and Chong Xiang. 2014. "The Wage Effects of Offshoring: Evidence from Danish Matched Worker-Firm Data: Dataset." American Economic Review. http://dx.doi.org/10. 1257/aer.104.6.1597.
36. Hummels, David, Jakob R. Munch, Lars Skipper, and Chong Xiang. 2012. "Offshoring, Transition, and Training: Evidence from Danish Matched Worker-Firm Data." American Economic Review 102 (3): 424-28.
37. Jacobson, Louis S., Robert J. LaLonde, and Daniel G. Sullivan. 1993. "Earnings Losses of Displaced Workers." American Economic Review 83 (4): 685-709. (Pubitemid 24390113)
38. Kambourov, Gueorgui, and Iourii Manovskii. 2009. "Occupational Specificity of Human Capital." International Economic Review 50 (1): 63-115.
39. Kasahara, Hiroyuki, and Joel Rodrigue. 2008. "Does the Use of Imported Intermediates Increase Productivity? Plant-Level Evidence." Journal of Development Economics 87 (1): 106-18.
40. Krishna, Pravin, Jennifer P. Poole, and Mine Zeynep Senses. 2011. "Wage Effects of Trade Reform with Endogenous Worker Mobility." National Bureau of Economic Research Working Paper 17256.
41. Manning, Alan. 2011. "Imperfect Competition in the Labor Market." In Handbook of Labor Economics. Vol. 4B, edited by Orley Ashenfelter and David Card, 973-1041. Amsterdam: Elsevier, North-Holland.
42. Martins, Pedro S., and Luca D. Opromolla. 2009. "Exports, Imports and Wages: Evidence from Matched Firm-Worker-Product Panels." Institute for the Study of Labor (IZA) Discussion Paper 4646.
43. Melitz, Marc J. 2003. "The Impact of Trade on Intra-industry Reallocations and Aggregate Industry Productivity." Econometrica 71 (6): 1695-725.
44. Munch, Jakob Roland, and Jan Rose Skaksen. 2008. "Human Capital and Wages in Exporting Firms." Journal of International Economics 75 (2): 363-72.
45. Ottaviano, Gianmarco I. P., Giovanni Peri, and Greg C. Wright. 2013. "Immigration, Offshoring, and American Jobs." American Economic Review 103 (5): 1925-59.
46. Parent, Daniel. 2000. "Industry-Specific Capital and the Wage Profile: Evidence from the National Longitudinal Survey of Youth and the Panel Study of Income Dynamics." Journal of Labor Economics 18 (2): 306-23.
47. Schank, Thorsten, Claus Schnabel, and Joachim Wagner. 2007. "Do Exporters Really Pay Higher Wages? First Evidence from German Linked Employer-Employee Data." Journal of International Economics 72 (1): 52-74. (Pubitemid 46506044)
48. Verhoogen, Eric A. 2008. "Trade, Quality Upgrading, and Wage Inequality in the Mexican Manufacturing Sector." Quarterly Journal of Economics 123 (2): 489-530.
49. Walker, W. Reed. 2013. "The Transitional Costs of Sectoral Reallocation: Evidence from the Clean Air Act and the Workforce." Quarterly Journal of Economics 128 (4): 1787-1835.
50. Wooldridge, Jeffrey M. 2002. Econometric Analysis of Cross Section and Panel Data. Cambridge, MA: MIT Press.