paper is motivated by recent evidence that trade has greatly expanded on the extensive margin (aka fragmentation, offshoring …

Ricardian model of offshoring. A unique final good is produced by combining a skilled and an unskilled product, each produced …-scarce East. Profit maximization determines both the extent of offshoring and technological progress. Offshoring induces skill … relevant case, starting from low levels, an increase in offshoring opportunities triggers a transition with falling real wages …

Trade theory consists of a portfolio of models. What elements might be useful in modeling the offshoring of white … characteristics of offshoring, and then use those models to identify the effects of technological or institutional changes which allow … offshoring of white-collar services to occur. …

employment expansion, an effect quite different from the source of gains from trade in the conventional approach. Second, we show … workers at home and abroad. In an extension to our baseline model, we illustrate that offshoring production from the high …

We study the evolution of sectoral employment and labour cost in 11 European countries over the last two decades. Our … countries and industries in employment growth, whereas country-specific effects are more important in the analysis of labour … employment. We pay special attention to Spain, a country that has experienced a high persistent unemployment rate, and show that …

employment turnover and high insurance can co-exist with an American-type steady-state with low unemployment, high employment …