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Offshoring, Wage Inequality and Firm Heterogeneity

The aim of the project is to empirically analyze the labor market effects of offshoring, in particular the effect of offshoring on wage inequality and employment polarization. Both phenomena have increased over the recent years but the channels through which offshoring affects the labor market are still not entirely clear. Moreover, to the best of our knowledge, there is not much empirical evidence taking into account the role of firms and their contribution to increased wage inequality and employment polarization within and across sectors. Our conjecture is that offshoring is closely linked to firm heterogeneity. Therefore, this project will explore the effect of offshoring by linking firm-level data to individual-level wage and employment data.