The Elasticity of Substitution and the Sector Bias of International Outsourcing

Table 3

Percentage change of relative high-skilled wages.

International outsourcing scenario	Percentage change in relative high-skilled wages
𝜑𝑌𝐿>0	𝑤𝐻−𝑤𝐿=−2.03
𝜑𝑌𝐻>0	𝑤𝐻−𝑤𝐿=−.65
𝜑𝑋𝐿>0	𝑤𝐻−𝑤𝐿=1.03
𝜑𝑋𝐻>0	𝑤𝐻−𝑤𝐿=1.65