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Author: | Egger, H. Egger, P. |
Title: | Outsourcing and skill-specific employment in a small economy: Austria after the fall of the Iron Curtain |
Journal: | Oxford Economic Papers
2003 : OCT, VOL. 55:4, p. 625-643 |
Index terms: | Outsourcing Skilled workers Industries Austria Eastern Europe |
Language: | eng |
Abstract: | The authors set a model, in which firms in a small industrialized country outsource part of their production to a foreign economy, which is rich in low-skilled labour. The analyse, how a decline in trade costs affects outsourcing activities and the production structure in the small economy. Using a panel of Austrian industries, the authors find that decreasing trade barriers - as observed after the fall of the Iron Curtain - indeed stimulate outsourcing to Central and Eastern Europe and the former Soviet Union, and that outsourcing to these countries significantly shifts relative employment in favour of high-skilled labour.. |
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