Document Type

Article

Department or Administrative Unit

Economics

Publication Date

2012

Abstract

The objective of this paper is to investigate the impact of offs ho ring on wage inequality and labor productivity in the U.S. Short-run and long-run data tests are undertaken to analyze the relationship among off shoring, wage inequality, and labor productivity in the U.S. Cointegration tests indicate that these three variables are related in the long-run. The main contribution of this paper lies in its focus on the short-run investigation of the relationship among these three variables. This investigation is conducted using the vector error correction (VEC) testing framework. VEC tests indicate that offshoring has had a statistically significant impact on both labor productivity and wage inequality in the U.S.

Comments

This article was originally published in the Indian Journal of Economics & Business. That journal is no longer being published.

Journal

Indian Journal of Economics & Business

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