International Outsourcing vs. ICT in explaining the wage gap in Italian Manufacturing
Alessia LO TURCO
The aim of this paper is to empirically evaluate the relative eects of international;outsourcing of materials and services and of ICT capital deepening on wage inequality between blue and white collars in the Italian manufacturing industry during the period 1985 - 1999. We merge an administrative data set on workers' wages and individual characteristics with data on imported inputs from Italian input-output tables and other sector-level variables. Results show that international outsourcing plays an important role in shaping the observed pattern in the wage gap, both in traditional and innovative industries,;while the role of technological change is less pronounced and limited to innovative sectors.
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