Is Human Capital Losing from Outsourcing? Evidence for Austria and Poland

In this paper, the authors show on the example of Austria and Poland that with the new international division of labour emerging in Europe Austria, the high income country, is specializing in the low skill intensive part of the value chain and Poland, the low income country, is specializing in the high skill part. As a result, skilled workers in Austria are losing from outsourcing, while gaining in Poland. In Austria, relative wages for human capital declined by 2 percent during 1995-2002 and increased by 41 percent during 1994-2002 in Poland.

Outsourcing, Inequality, and Cities

This paper exams how the new technologies affect where people work and where they live, on
both the empirical and theoretical fronts. Its empirical contribution is to show two facts: (i) “back
office” activity like low skill secretarial work is increasingly concentrated in small cities, while “front
office” activity like high skill managerial work is increasingly specialized in large cities; (ii) workers
without college degrees are migrating to small cities, whereas workers with degrees are moving to
large cities.

Offshoring in a Knowledge Economy

How does the formation of cross-country teams affect the organization of work and the structure of wages? To study this question the authors propose a theory of the assignment of heterogeneous agents into hierarchical teams, where less skilled agents specialize in production and more skilled agents specialize in problem solving.

Is Human Capital Losing from Outsourcing? Evidence for Austria and Poland

In this paper, the authors show on the example of Austria and Poland that with the new international division of labor emerging in Europe Austria, the high income country, is specializing in the low skill intensive part of the value chain and Poland, the low income country, is specializing in the high skill part. As a result, skilled workers in Austria are losing from outsourcing, while gaining in Poland.

Is Human Capital Losing from Outsourcing? Evidence for Austria and Poland

In this paper, the authors show on the example of Austria and Poland that with the new international division of labor emerging in Europe Austria, the high income country, is specializing in the low skill intensive part of the value chain and Poland, the low income country, is specializing in the high skill part. As a result, skilled workers in Austria are losing from outsourcing, while gaining in Poland.

Outsourcing and Organizational Change, An Employee Perspective

This paper analyzes the nature of the organizational change implied in outsourcing, comparing it to mergersacquisitions and downsizing. Next, it identifies some critical aspects of the transition management process which, when dealt with effectively, may enhance the success of outsourcing. The theoretical analysis is contrasted with findings from an empirical study on outsourcing in the Netherlands.