While growing wage inequality is of ongoing concern in many developed countries, there still does not exist a consensus on the predominant source of this trend. Some argue that skill-biased technological change is responsible for the shift in the relative demand of skilled workers while others...

This paper presents an empirical analysis of “outsourcing” using establishment level data for UK manufacturing industries. We analyse an establishment’s decision to outsource and the subsequent effects of outsourcing on the establishment’s productivity. We compare outsourcing in domestic...