西山博幸, 中野美菜, 坪井美都紀, 古田学
Kobe University, Graduate School of Economics, Discussion Paper 2511 2025年4月
To examine whether offshoring widens or narrows wage inequality,
we develop a tractable North-South model featuring firm heterogeneity,
foreign outsourcing, and vertical specialization. In the baseline
model with exogenous firms' outsourcing decisions, we show that
increased outsourcing widens wage inequality. In an extended model
with endogenous firms' outsourcing decisions, however, outsourcing
either widens or narrows wage inequality, depending on the initial
level of outsourcing. Using Japanese industry-level data, we then show
that–in contrast to most findings for the U.S.–offshoring narrows
wage inequality once we account for initial industry-level differences
in the extent of outsourcing.