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International Outsourcing and the Skill-Specific Wage Bill in Eastern Europe

By: Stehrer, Robert.
Contributor(s): Egger, Peter.
Material type: materialTypeLabelBookSeries: wiiw Working Papers: 17Publisher: Wien : Wiener Institut für Internationale Wirtschaftsvergleiche (wiiw), 2001Description: S., 30cm.Subject(s): international outsourcing | wage effects | panel econometricsCountries covered: Czechia | Hungary | Poland | Visegrad countrieswiiw Research Areas: International Trade, Competitiveness and FDI | Labour, Migration and Income DistributionClassification: C33 | F14 | F15 | F16 | F40 Online resources: Click here to access online Summary: The paper analyses the effects of international fragmentation in terms of intermediate goods trade on the dynamics of skill-specific real wage bills in manufacturing of three Central and East European countries (Hungary, Poland, the Czech Republic). Both intermediate goods exports and imports of the CEECs exhibit a positive impact on the unskilled workers' wage bill. Since 1993, intermediate goods trade with the European Union alone has accounted for a reduction of about 58 per cent of the predicted annual change in the skilled-to-unskilled wage bill ratio in Hungary's manufacturing. The corresponding contribution was 31 per cent in the Czech Republic and 30 per cent in Poland.
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Item type Current library Call number Status Date due Barcode
Paper WIIW Library 5.700/17 (Browse shelf(Opens below)) Available 1000010000516

The paper analyses the effects of international fragmentation in terms of intermediate goods trade on the dynamics of skill-specific real wage bills in manufacturing of three Central and East European countries (Hungary, Poland, the Czech Republic). Both intermediate goods exports and imports of the CEECs exhibit a positive impact on the unskilled workers' wage bill. Since 1993, intermediate goods trade with the European Union alone has accounted for a reduction of about 58 per cent of the predicted annual change in the skilled-to-unskilled wage bill ratio in Hungary's manufacturing. The corresponding contribution was 31 per cent in the Czech Republic and 30 per cent in Poland.

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The Vienna Instiute for International Economic Studies (wiiw)

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