This dissertation consists of three essays, which mainly talk about the wage inequality caused by outsourcing in the source countries like the US. The title of the first essay is “Does Outsourcing Always Benefit Skilled Labor? A Dynamic Product Cycle Model Approach.” To understand why outsourcing did not cause wage inequality in the 1970s, I build a dynamic product cycle model with three kinds of labor inputs, scientists, white-collar workers, and blue-collar workers. First, only a homogenous representative producer exists in the model and then the paper allows for producer heterogeneity. According to my theoretical model, outsourcing can hurt skilled labor and does not cause wage inequality if outsourcing industries are absolutely blue-collar worker-intensive compared to non-outsourcing industries. Only scientists who conduct research and development always benefit from outsourcing.
The second essay is an empirical work. The title is “Outsourcing, Innovation, and Wage Inequality in the United States: What Happened to the Outsourcing Effect on Wage Inequality in the 1970s?” I find that, in the 1970s, white-collar workers’ wages deteriorated and blue-collar workers’ wages were non-decreasing. R&D workers always benefit from outsourcing. Except computers and high-technology capital, innovation expenditure on wage payment was an additional source of wage inequality in the 1980s.
The last essay is named “Beyond the Wage Inequality, the Impact of Outsourcing on the U.S. Labor Market.” To understand the impact of outsourcing on employment, I examine laborers’ ages, gender ratio, years of education, and job tenure and retention rates. By employing the January Current Population Survey (CPS) data, the National Bureau of Economic Research (NBER) production data, and outsourcing data provided by Feenstra and Hanson, I find that outsourcing decreased blue-collar laborers’ average years of completed education; increased the hiring of females into white-collar workers, and increased job stability of unskilled and skilled laborers in the 1980s. Thus, outsourcing did not take away unskilled laborers’ jobs but hindered new hiring of young unskilled workers
| Identifer | oai:union.ndltd.org:tamu.edu/oai:repository.tamu.edu:1969.1/ETD-TAMU-1281 |
| Date | 15 May 2009 |
| Creators | Hsu, Kuang-Chung |
| Contributors | Deere, Donald, Gawande, Kishore, Glass, Amy, Ureta, Manuelita |
| Source Sets | Texas A and M University |
| Language | en_US |
| Detected Language | English |
| Type | Book, Thesis, Electronic Dissertation, text |
| Format | electronic, application/pdf, born digital |
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