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Title: Offshoring, Immigration and the Domestic Wage Distribution: Evidence from the U.S. States 2000-05

Citation Type: Miscellaneous

Publication Year: 2008

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Abstract: While workers in developed countries have become increasingly concerned about the impact of offshoring and immigration on domestic wages, the available evidence on the link between offshoring, immigration, and wages remains ambiguous. This paper presents a simple model that identifies the impact of offshoring and immigration on native wages and tests these predictions using U.S. state-industry level data. Highlighting the importance of the productivity effect identified in the model, the results show that offshoring increases and immigration decreases the wages of domestic workers. Decomposing offshoring and immigration according to the income level of the foreign country proves to be an important distinction with results indicating that offshoring to less developed countries and immigration from developed countries increases the wages of most native workers while offshoring to developed countries and immigration from less developed countries decreases the wages of most native workers.

Url: https://spot.colorado.edu/~kellerw/courses/9999f08/Olney.pdf

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Authors: Olney, William, W

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Data Collections: IPUMS USA

Topics: Migration and Immigration

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