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The Impact Of Outsourcing And High-Technology Capital On Wages: Estimates For The United States, 1979-1990 (1998)
| Citations: | 494 - 19 self |
BibTeX
@MISC{Feenstra98theimpact,
author = {Robert C. Feenstra and Gordon H. Hanson},
title = {The Impact Of Outsourcing And High-Technology Capital On Wages: Estimates For The United States, 1979-1990},
year = {1998}
}
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Abstract
We estimate the relative influence of trade versus technology on wages in a "large country" setting, where technological change affects product prices. Trade is measured by the foreign outsourcing of intermediate inputs, while technological change is measured by expenditures on high-technology capital such as computers. In our initial specification, we find that computers explain about 35 percent of the increase in the relative wage of nonproduction workers, while outsourcing explains at most 15 percent. In an alternative specification, outsourcing explains about 40 percent of the increase in the relative nonproduction wage, whereas computer expenditures can explain 75 percent of this increase.
Keyphrases
high-technology capital united state technological change nonproduction worker important policy topic industrial country recent economic performance product price computer expenditure relative wage relative nonproduction wage large country less-skilled worker intense academic attention intermediate input low-skilled worker relative influence foreign outsourcing real term trade versus technology alternative specification initial specification
