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Title: Offshoring, Immigration, and the Native Wage Distribution

Citation Type: Miscellaneous

Publication Year: 2009

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Abstract: While workers in developed countries have become increasingly concerned about the impact oshoring and immigration have on their wages, the available evidenceremains mixed. This paper presents a simple model that examines the impact of offshoring and immigration on wages and tests these predictions using U.S. state-industry level data. According to the model, the productivity effect causes offshoring to have a more positive impact on low-skilled wages than immigration, but this gapdecreases with the workers' skill level. The empirical results con?rm these predictions and thus provide the fi?rst evidence of the productivity effect. Furthermore, the impactof oshoring and immigration on wages differs depending on the income level of the foreign country, which may explain the mixed results in the literature.

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Authors: Olney, William W.

Publisher: University of Colorado, Boulder

Data Collections: IPUMS USA

Topics: Migration and Immigration, Poverty and Welfare

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