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Full-Text Articles in Social and Behavioral Sciences
Wage Inequality And Offshoring: Are They Related?, Koushik Ghosh, Peter J. Saunders, Thomas Tenerelli
Wage Inequality And Offshoring: Are They Related?, Koushik Ghosh, Peter J. Saunders, Thomas Tenerelli
All Faculty Scholarship for the College of Business
The objective of this paper is to investigate the impact of offs ho ring on wage inequality and labor productivity in the U.S. Short-run and long-run data tests are undertaken to analyze the relationship among off shoring, wage inequality, and labor productivity in the U.S. Cointegration tests indicate that these three variables are related in the long-run. The main contribution of this paper lies in its focus on the short-run investigation of the relationship among these three variables. This investigation is conducted using the vector error correction (VEC) testing framework. VEC tests indicate that offshoring has had a statistically significant …