Globalization, Outsourcing, and Wage Inequality

  title={Globalization, Outsourcing, and Wage Inequality},
  author={R. Feenstra and G. Hanson},
  • R. Feenstra, G. Hanson
  • Published 1996
  • Economics
  • There is considerable debate over whether international trade has contributed to the declining economic fortunes of less skilled workers. One issue that has become lost in the current discussion is how firms respond to import competition and how these responses, in turn, are transmitted to the labor market. In previous work, we have argued that outsourcing, by which we mean the import of intermediate inputs by domestic firms, has contributed to an increase in the relative demand for skilled… CONTINUE READING
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