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Title: The impact of outsourcing on wages in Singapore : estimates from 1995 to 2007.
Authors: Low, Wan Qing.
Chew, Swee Kee.
Phang, Joseph Yijun.
Keywords: DRNTU::Humanities
Issue Date: 2013
Abstract: This paper studies the impact of outsourcing on wage inequality in Singapore's manufacturing sector. The estimation procedure used is developed by Feenstra and Hanson (1999), which is modified from the conventional “mandated wage regression model”, and is able to distinguish product price changes between factor-biased and sector-biased shifts. Outsourcing is measured by the share of imported intermediate inputs in the total purchase of non-energy materials, while technological change is measured by capital expenditure on machineries. Our results indicate that there is a predicted 0.39 percent wage increase for skilled workers and a predicted 0.12 percent wage decrease for unskilled workers using the narrow definition of outsourcing as introduced by Feenstra and Hanson (1999). This suggests that outsourcing indeed contributes to the increasing wage inequality in the manufacturing sector of Singapore.
Rights: Nanyang Technological University
Fulltext Permission: restricted
Fulltext Availability: With Fulltext
Appears in Collections:HSS Student Reports (FYP/IA/PA/PI)

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