The authors link industry-level data on trade and offshoring with individual-level worker data from the Current …

which generates local spillovers. Tasks can be performed at home or abroad, but offshoring entails costs that vary by task …. In equilibrium, the tasks with the highest offshoring costs may not be traded. Among the remainder, those with the … relatively higher offshoring costs are performed in the country that has the higher wage and higher aggregate output. The paper …