The Impact of Outsourcing and High-Technology Capital on Wages: Estimates For the United States, 1979–1990

  title={The Impact of Outsourcing and High-Technology Capital on Wages: Estimates For the United States, 1979–1990},
  author={R. Feenstra and G. Hanson},
  journal={Quarterly Journal of Economics},
  • R. Feenstra, G. Hanson
  • Published 1999
  • Economics
  • Quarterly Journal of Economics
  • We estimate the relative influence of trade versus technology on wages in a "large-country" setting, where technological change affects product prices. Trade is measured by the foreign outsourcing of intermediate inputs, while technological change is measured by expenditures on high-technology capital such as computers. The estimation procedure we develop, which modifies the conventional "price regression," is able to distinguish whether product price changes are due to factor-biased versus… CONTINUE READING
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