%0 Report %A Geishecker, Ingo %A Görg, Holger %T Winners and Losers: Fragmentation, Trade and Wages Revisited %D 2004 %8 2004 Jan %I Institute of Labor Economics (IZA) %C Bonn %7 IZA Discussion Paper %N 982 %U https://www.iza.org/index.php/publications/dp982 %X Our paper investigates the link between outsourcing and wages utilising a large household panel and combining it with industry level information on industries’ outsourcing activities from input-output tables. By doing so we can arguably overcome the potential endogeneity bias as well as other shortcomings that affect industry level studies. We find that fragmentation has had a marked impact on wages. Distinguishing three skill categories we find evidence that outsourcing reduced the real wage for workers in the lowest skill categories; this result is robust to a number of different specifications and definitions of outsourcing. Furthermore we find some evidence that high-skilled workers experienced increased wages due to fragmentation. %K wages %K fragmentation %K trade %K outsourcing %K skills