NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Rasmus Jorgensen

Department of Economics
University of Copenhagen
Ă˜ster Farimagsgade 5
Building 26
DK-1353 Copenhagen K

E-Mail: rasmus.jorgensen@econ.ku.dk

NBER Working Papers and Publications

October 2011The Wage Effects of Offshoring: Evidence from Danish Matched Worker-Firm Data
with David Hummels, Jakob R. Munch, Chong Xiang: w17496
We estimate how offshoring and exporting affect wages by skill type. Our data match the population of Danish workers to the universe of private-sector Danish firms, whose trade flows are broken down by product and origin and destination countries. Our data reveal new stylized facts about offshoring activities at the firm level, and allow us to both condition our identification on within-job-spell changes and construct instruments for offshoring and exporting that are time varying and uncorrelated with the wage setting of the firm. We find that within job spells, (1) offshoring tends to increase the high-skilled wage and decrease the low-skilled wage; (2) exporting tends to increase the wages of all skill types; (3) the net wage effect of trade varies substantially across workers of the sa...

Published: David Hummels & Rasmus J?rgensen & Jakob Munch & Chong Xiang, 2014. "The Wage Effects of Offshoring: Evidence from Danish Matched Worker-Firm Data," American Economic Review, American Economic Association, vol. 104(6), pages 1597-1629, June. citation courtesy of

 
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