The paper investigates the consequences of outsourcing of labor intensive activities to low-wage economies. This trend … markets are missing. The main results are: (i) outsourcing raises unemployment and labor income risk of unskilled workers; (ii …) it increases inequality among high- and low-income groups; and (iii) the gains from outsourcing can be made Pareto …

We investigate the impact of international outsourcing on productivity using plant level data for Irish manufacturing …. Specifically, we distinguish the effect of outsourcing of materials from services inputs. Moreover, we examine whether the impact … multinational. Our results show robust evidence for positive effects from outsourcing of services inputs for exporters, either …