This paper analyzes the impact increased offshoring has on labor income risk. It is therefore distinct from a large … offshoring trends at the sector level. Importantly, we distinguish between transitory and permanent shocks to individual income …-insurable. It thus has a particular relevance for individual welfare. Our findings suggest that offshoring tends to lower permanent …

We study the short- and long-run implications of offshoring on innovation, technology adoption, wage and income …-abundant West to a skill-scarce East. Profit maximization determines both the extent of offshoring and technological progress …. offshoring induces technical change with an ambiguous factor bias. When the initial level of offshoring is low, an increase in …

This paper provides new evidence on how offshoring shifts relative labor demand for tasks at the industry level. A … novel theoretical mechanism, based on sorting of heterogeneous workers into occupations with task dependent offshoring cost …, guides estimation. Cost shares of tasks are linked to offshoring in a panel estimation using German data for 1998-2007. It is …