Department or Administrative Unit
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.
Ghosh, K., Saunders, P.J., & Tenerelli, T. (2012). Wage inequality and offshoring: Are they related? Indian Journal of Economics & Business 11(2), 503-519.
Indian Journal of Economics & Business