Global Outsourcing and Wage Inequality in Middle-Income Countries: Evidence from South Korea
- Authors
- Lee, Hongshik; Sim, Soonhyung
- Issue Date
- 2-1월-2016
- Publisher
- ROUTLEDGE JOURNALS, TAYLOR & FRANCIS LTD
- Keywords
- F16; F23; wage inequality; middle income country; system GMM; Global outsourcing
- Citation
- GLOBAL ECONOMIC REVIEW, v.45, no.1, pp.19 - 41
- Indexed
- SSCI
SCOPUS
KCI
- Journal Title
- GLOBAL ECONOMIC REVIEW
- Volume
- 45
- Number
- 1
- Start Page
- 19
- End Page
- 41
- URI
- https://scholar.korea.ac.kr/handle/2021.sw.korea/89845
- DOI
- 10.1080/1226508X.2015.1081075
- ISSN
- 1226-508X
- Abstract
- A substantial number of studies have suggested that global outsourcing can induce wage inequality. As Feenstra and Hanson [(1996a) Foreign investment, outsourcing, and relative wage, in: R. C. Feestra, G. M. Hanson, and D. A. Irwin (Eds.) Political Economy of Trade Policy: Essays in Honor of Jagdish Bhagwati (Cambridge: The MIT Press), pp. 89-127] argued, global outsourcing is comparable to skill-biased technological change in that global outsourcing is more likely to increase the wage of skilled workers rather than their unskilled counterparts. We examine the effects of outsourcing on wage of skilled and unskilled workers in Korea's manufacturing sector with a focus on the dissimilar effects of outsourcing to developed countries (DCs) and less developed countries (LDCs) on relative wage. The results of system and difference GMM estimation based on manufacturing data from 1992 to 2006 indicate that outsourcing to DCs and LDCs have opposite (and significant) effects on relative wage, that is, outsourcing to DCs (LDCs) decreases the wage of skilled (unskilled) workers.
- Files in This Item
- There are no files associated with this item.
- Appears in
Collections - College of Political Science & Economics > Department of Economics > 1. Journal Articles
Items in ScholarWorks are protected by copyright, with all rights reserved, unless otherwise indicated.