Article ID Journal Published Year Pages File Type
7356000 Japan and the World Economy 2018 11 Pages PDF
Abstract
This study examines the existence of the offshoring threat on wage rate using plant-level data. To do so, we construct a simple version of the traditional collective wage-bargaining model to consider the offshoring threat. Based on theoretical predictions of the threat effect, we examine evidence of the offshoring threat using plant-level data from South Korea and the endogenous switching regression model. The estimated results in our empirical study strongly suggest that the offshoring threat may exist.
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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