Recent contributions on offshoring often assume that firms can freely split their production process into separate … technologically determined sequence of production steps. In our model, cost savings from offshoring fluctuate along the production … from offshoring even if relocating individual steps would be advantageous in terms of offshoring costs, or they may …

Recent contributions on offshoring often assume that firms can freely split their production process into separate … technologically determined sequence of production steps. In our model, cost savings from offshoring fluctuate along the production … from offshoring even if relocating individual steps would be advantageous in terms of offshoring costs, or they may …

In this paper, we develop a two-sector general equilibrium trade model which includes offshoring, sequential production … technological change affect equilibrium offshoring patterns. We show that, against common belief, a reduction in trade costs lowers … the range of tasks offshored even though the aggregate volume of offshoring may increase. …

In this paper, we develop a two-sector general equilibrium trade model which includes offshoring, sequential production … technological change affect equilibrium offshoring patterns. We show that, against common belief, a reduction in trade costs lowers … the range of tasks offshored even though the aggregate volume of offshoring may increase. …

parameters may lead to a large increase in offshoring activities …

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 …

The paper investigates the consequences of outsourcing of labor intensive activities to lowwage 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 …

Outsourcing of labor intensive activities challenges the welfare state and undermines the protection of low … results are: (i) Social insurance props up wages, leading to more outsourcing and unskilled unemployment. (ii) Redistribution … from the skilled to the working poor acts as a wage subsidy to unskilled workers, thereby reducing gross wages, outsourcing …