The Impact of Outsourcing and High-Technology Capital on Wages: Estimates For the United States, 1979-1990

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ID: 291817
1999
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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. The estimation procedure we develop, which modifies the conventional “price regression,” is able to distinguish whether product price changes are due to factor-biased versus sector-biased technology shifts. In our base specification we find that computers explain about 35 percent of the increase in the relative wage of nonproduction workers, while outsourcing explains 15 percent; both of these effects are higher in other specifications.
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openalex_W2146440686 Use this key to autocite in the manuscript while using SciMatic Manuscript Manager or Thesis Manager
Authors Robert C. Feenstra, Gordon Hanson
Journal the quarterly journal of economics
Year 1999
DOI
10.1162/003355399556179
URL
https://doi.org/10.1162/003355399556179
Keywords Keywords not found

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