{"id":110345,"date":"2024-01-22T16:30:50","date_gmt":"2024-01-22T15:30:50","guid":{"rendered":"https:\/\/www.wifo.ac.at\/publication\/110345\/"},"modified":"2024-11-07T03:42:14","modified_gmt":"2024-11-07T02:42:14","slug":"international-outsourcing-and-labour-with-sector-specific-human-capital","status":"publish","type":"publication","link":"https:\/\/www.wifo.ac.at\/en\/publication\/110345\/","title":{"rendered":"International Outsourcing and Labour with Sector-specific Human Capital"},"content":{"rendered":"","protected":false},"featured_media":0,"template":"","class_list":["post-110345","publication","type-publication","status-publish","hentry"],"acf":{"subtitle":"","text":"This paper attempts to quantify the impact of outsourcing on production patterns and the labour market in a two-sector specific-factors model with skilled labour (specific factor) and unskilled labour (mobile factor). Outsourcing can be compared to the case, where trade liberalisation leads to trade in final goods and a change in relative prices. In the latter case a downward pressure on the wage rate for skilled labour in one sector and a wage rise for skilled labour in the other sector indicate significant adjustment costs, whereas with outsourcing an outcome of rising wage rates for skilled labour in both sectors is feasible. The full impact of outsourcing depends on the relative weight of the \"factor savings\" and the \"cost savings\" effect. The negative impact on the unskilled wage rate is similar in both cases and depends on the macroeconomic relevance of the respective shocks.","onlinedate":"2006-04-26 02:00:00","lang":"English","publication_series":"","publication_date":"20060401","publication_date_year":"","publication_date_full":false,"publication_num_pages":"27","keywords":"[\"Outsourcing\",\"specific factors model\",\"trade liberalisation\"]","jelcodes":"[]","related_publications":"[]","pdf":323977,"zip":null,"link":"","monthly_report":true,"monthly_report_main":false,"monthly_report_volume":"","monthly_report_pages":"","monthly_report_pages_sort":"0","issue":"272","journal":"WIFO Working Papers","publisher":"","invisible":false,"external":false,"embargo_date":null,"types":[44410],"research_groups":[3655],"collaboration":"","persons":[3675],"persons_data":"[{\"personId\":3675,\"personName\":\"Kurt Kratena\",\"organisationNames\":[]}]","clients":[],"subclients":[],"partners":[],"topics":[],"host_publication_title":"","host_publication_subtitle":"","place_of_publication":"","host_publication_editors":"[]","type_description":"","output_media":"","chapter":"","article_number":"","citations":"{\"apa\":\"<div class=\\\"rendering rendering_researchoutput  rendering_researchoutput_apa rendering_contributiontoperiodical rendering_apa rendering_contributiontoperiodical_apa\\\"><span>Kratena, K.<\\\/span> (2006). <span>International Outsourcing and Labour with Sector-specific Human Capital<\\\/span>. <span><em>WIFO Working Papers<\\\/em><\\\/span>, (272). <a onclick=\\\"window.open(this.href, '_blank','noopener,noreferrer'); return false;\\\" href=\\\"https:\\\/\\\/www.wifo.ac.at\\\/wwa\\\/pubid\\\/26423\\\" class=\\\"link\\\"><span>https:\\\/\\\/www.wifo.ac.at\\\/wwa\\\/pubid\\\/26423<\\\/span><\\\/a><\\\/div>\",\"vancouver\":\"<div class=\\\"rendering rendering_researchoutput  rendering_researchoutput_vancouver rendering_contributiontoperiodical rendering_vancouver rendering_contributiontoperiodical_vancouver\\\"><span>Kratena K<\\\/span>. <span class=\\\"title\\\"><span>International Outsourcing and Labour with Sector-specific Human Capital<\\\/span><\\\/span>. <span>WIFO Working Papers<\\\/span>. 2006 Apr;(272).<\\\/div>\",\"bibtex\":\"<div class=\\\"rendering rendering_researchoutput  rendering_researchoutput_bibtex rendering_contributiontoperiodical rendering_bibtex rendering_contributiontoperiodical_bibtex\\\"><div>@misc{e20ee6272fac46a984ffcbed8cd64b64,<\\\/div><div>  title    = \\\"International Outsourcing and Labour with Sector-specific Human Capital\\\",<\\\/div><div>  abstract = \\\"This paper attempts to quantify the impact of outsourcing on production patterns and the labour market in a two-sector specific-factors model with skilled labour (specific factor) and unskilled labour (mobile factor). Outsourcing can be compared to the case, where trade liberalisation leads to trade in final goods and a change in relative prices. In the latter case a downward pressure on the wage rate for skilled labour in one sector and a wage rise for skilled labour in the other sector indicate significant adjustment costs, whereas with outsourcing an outcome of rising wage rates for skilled labour in both sectors is feasible. The full impact of outsourcing depends on the relative weight of the {\\\"}factor savings{\\\"} and the {\\\"}cost savings{\\\"} effect. The negative impact on the unskilled wage rate is similar in both cases and depends on the macroeconomic relevance of the respective shocks.\\\",<\\\/div><div>  keywords = \\\"Outsourcing, specific factors model, trade liberalisation, Outsourcing, specific factors model, trade liberalisation\\\",<\\\/div><div>  author   = \\\"Kurt Kratena\\\",<\\\/div><div>  year     = \\\"2006\\\",<\\\/div><div>  month    = apr,<\\\/div><div>  language = \\\"English\\\",<\\\/div><div>  journal  = \\\"WIFO Working Papers\\\",<\\\/div><p>}<\\\/p><\\\/div>\",\"ris\":\"<div class=\\\"rendering rendering_researchoutput  rendering_researchoutput_ris rendering_contributiontoperiodical rendering_ris rendering_contributiontoperiodical_ris\\\"><p>TY  - GEN<\\\/p><p>T1  - International Outsourcing and Labour with Sector-specific Human Capital<\\\/p><p>AU  - Kratena, Kurt<\\\/p><p>PY  - 2006\\\/4<\\\/p><p>Y1  - 2006\\\/4<\\\/p><p>N2  - This paper attempts to quantify the impact of outsourcing on production patterns and the labour market in a two-sector specific-factors model with skilled labour (specific factor) and unskilled labour (mobile factor). Outsourcing can be compared to the case, where trade liberalisation leads to trade in final goods and a change in relative prices. In the latter case a downward pressure on the wage rate for skilled labour in one sector and a wage rise for skilled labour in the other sector indicate significant adjustment costs, whereas with outsourcing an outcome of rising wage rates for skilled labour in both sectors is feasible. The full impact of outsourcing depends on the relative weight of the \\\"factor savings\\\" and the \\\"cost savings\\\" effect. The negative impact on the unskilled wage rate is similar in both cases and depends on the macroeconomic relevance of the respective shocks.<\\\/p><p>AB  - This paper attempts to quantify the impact of outsourcing on production patterns and the labour market in a two-sector specific-factors model with skilled labour (specific factor) and unskilled labour (mobile factor). Outsourcing can be compared to the case, where trade liberalisation leads to trade in final goods and a change in relative prices. In the latter case a downward pressure on the wage rate for skilled labour in one sector and a wage rise for skilled labour in the other sector indicate significant adjustment costs, whereas with outsourcing an outcome of rising wage rates for skilled labour in both sectors is feasible. The full impact of outsourcing depends on the relative weight of the \\\"factor savings\\\" and the \\\"cost savings\\\" effect. 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