Browsing Working papers by Subject "Wages"
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Rent Sharing or Composition?Fosse, Henrik Barslund; Maitra, Madhura (Frederiksberg, 2012)[More information][Less information]
Abstract: Offshoring firms are found to pay higher average wages than purely domestic firms. We provide a unifying empirical approach by capturing the different channels through which offshoring may explain this wage difference: (i) due to change in the composition of workers (skill composition effect) (ii) because all existing workers get higher pay (rent sharing effect). Using Danish worker-firm data we explain how much each channel contributes to higher wages. To estimate the causal effect of offshoring on wages we use China’s accession to the WTO in December 2001 - and the soon after boom in Chinese exports - as positive exogenous shocks to the incentive to offshore to China. Both skill composition and rent sharing effects are found to be important in explaining the resultant gain in wages. We also show that the firm’s timing in the offshoring process determines the relative importance of a channel. For firms offshoring to China in 2002 but not in 1999, only rent sharing explains the gain in wages. For firms offshoring to China both before and after China’s WTO accession the wage increase is explained mostly by the skill composition effect. Moreover, these patterns are not discernible from the measures of skill composition and rent sharing available in typical firm level datasets - like ratio of educated to uneducated workers and sales per employee. URI: http://hdl.handle.net/10398/8540 Files in this item: 1
Fosse_2012_2.pdf (255.2Kb) -
Larsen, Birthe; Waisman, Gisela (Frederiksberg, 2012)[More information][Less information]
Abstract: We examine the impact of discrimination on labour market performance when workers are subject to a risk of losing skills during the experience of unemployment. Within a search and matching model, we show that all natives and immigrants are affected by discrimination. Discrimination in one sector has positive spillovers, inducing employment increases in the other sector. Discrimination may induce immigrants to train more or less than natives, depending on the sector where it is present. Welfare tends to be most negatively affected by discrimination among highproductivity workers. URI: http://hdl.handle.net/10398/8520 Files in this item: 1
Larsen_Waisman_wp2012-5.pdf (374.6Kb) -
Waisman, Gisela; Larsen, Birthe (Frederiksberg, 2012)[More information][Less information]
Abstract: We exploit the regional variation in negative attitudes towards immigrants to Sweden in order to analyse the consequences of the attitudes on immigrants welfare. We find that attitudes towards immigrants are of importance: they both affect their labour market outcomes and their quality of life. We interpret the negative effect on wages as evidence of labour market discrimination. We estimate the welfare effects of negative attitudes, through their wage and local amenities, for immigrants with different levels of skills, origin, gender and age. URI: http://hdl.handle.net/10398/8519 Files in this item: 1
Waisman_Larsen_wp2012-4.pdf (542.0Kb)
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