CEU eTD Collection (2012); Pető, Rita: Imports, Offshoring and Wages: The Case of the Hungarian Food and Textile Industry

CEU Electronic Theses and Dissertations, 2012
Author Pető, Rita
Title Imports, Offshoring and Wages: The Case of the Hungarian Food and Textile Industry
Summary I estimate how offshoring affect wages of workers in the Hungarian food and textile industry utilizing Hungarian linked employer-employee data and combined with detailed trade statistics of firms broken down by product. I match workers to imported products that related to the workers’ tasks or that are output of the given job by using the product- and firm-level trade statistics and by using the occupation description of the worker. I find that workers exposed to offshoring earn less than workers working at importing firms but not exposed to offshoring. In the case of the food industry the negative direct effect is somewhat offset by the cost-saving mechanism but remain negative, while in the case of the textile industry the positive effect of importing input and the positive effect of cost-saving and productivity increase even reverses the negative direct effect of offshoring. These findings suggest that there is a justified fear of negative effect of offshoring, but the size and its importance vary by industry.
Supervisor Miklos Koren
Department Economics MA
Full texthttps://www.etd.ceu.edu/2012/peto_rita.pdf

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