Saturday, June 09, 2007

Outsourcing widening gap between skilled, unskilled


Products and services that are outsourced from the United States on a daily basis range from X-ray readings to call centers and tax preparation.

And the loss of jobs in the United States because of the work that is leaving the country has widened the gap between wages for skilled and unskilled employees.

That was a message presented Thursday at Purdue University during a breakout session of Global Trade Analysis Project Conference.

"A lot of concern is being expressed by labor (groups) in the United States over jobs being outsourced. Materials outsourcing increased the demand for skilled labor in the 1980s in the manufacturing industry," said Amer Ahmed, who presented a paper titled "Outsourcing and Wages: An Empirical Analysis."

An increase of highly skilled (employee) wages relative to low skilled competitors are making highly skilled workers more productive.

The issues include an economic analysis of poverty in the Americas, China and exchange rates and the impact of increased biofuels production on global trade and agriculture.