Abstract:
Literature on the determinants of wages, wage setting and the distribution of wages is vast. Katz and Autor (1999, p. 1) argue that ”studies of the wage structure are as old as the economic profession”. However, due to a lack of comprehensive, international comparable wage data many studies analyzing wage distributions focus either on a small number of countries, or on a small number of occupations (see e.g. Goos & Manning, 2007, and Gosling, Machin, & Meghir, 2000 for the UK, or Dustmann, Ludsteck, & Schönberg, 2009, and Spitz-Oener, 2006 for Germany). Wage inequality also plays an important role in the discussion of the effects of trade and foreign direct investment on income inequality (see e.g. Sachs & Shatz, 1996 for the United States, Haskel & Slaughter, 2001 for the United Kingdom, or Beyer, Rojas, & Vergara, 1999 for Chile). Furthermore, wages indicate labor costs are therefore a key variable in the international trade research.
In order to investigate these important issues, I rely on a unique set of data and make a novel contribution to the analysis of international wage patterns. Thus, this thesis contributes to the existing discourses in four different ways. First, Chapter 2 introduces a comprehensive wage database which provides the basis for the empirical analysis in the following chapters. Second, I present new evidence on occupational wage distribution and the channels through which technological change affects wages in Chapter 3. Third, the effects of trade and foreign direct investment on the degree of wage inequality are determined in Chapter 4. Fourth, in Chapter 5 of this thesis, I change the perspective of wages. While wages and wage distributions were of main interest in the previous chapters, wages now serve as measures of labor costs to analyze the determinants of service offshoring. Finally, Chapter 6 summarizes the main findings of this thesis and concludes.