Abstract Based on the three-factor model of Feenstra R C et al（1997）,this paper analyzes the theoretical mechanism of the impact of international outsourcing on wage gap between skilled labor and unskilled labor in developed and developing countries with an empirical study on how outsourcing activities affects the wage gap in overall and sub-sectors of China's industry by using industrial panel data. It is found that international outsourcing and technological progress both have significant positive effect on the expansion of wage gap in China's industrial sectors ,but outsourcing activities has relatively stronger effect on the labor resources-intensive sector and the medium-technology sector. Thus, China should develop effective income distribution policy to better deal with the relationship between efficiency and equity.
2012, Vol. 1 
