International Trade, Offshoring & US Wages

2009-08-31

Good article at VoxEU on the effect of offshoring on US wages, reporting on a study by Berkeley's Ann Harison, et al. Here is a summary:

This column revisits the heated debate over international trade, offshoring, and US wages using new data. It says that increased international exchange with low-income countries has depressed US wages. That effect only arose during the 1990s, suggesting a different conclusion about trade, offshoring, and income inequality than the previous round of debate.

Longstanding debate in the trade area, and of course the issue is of great importance when discussing US-China politics and trade policy.
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