equilibrium where input sub-bundles may be traded (offshoring). The model allows for several goods and two fragments, produced …. I also explore trade policy implications and compare offshoring to migration. …

of offshoring emphasized by Grossman & Rossi-Hansberg (2008) emerges as a vehicle of job creation. Improvements in the … technology of offshoring causes job losses at the extensive margin where ever more tasks are performed abroad, but it also causes … improvements in the technology of offshoring. …

In this paper, we explore the role of trade in differentiated final goods as well offshoring of tasks for inequality …

We study the various consequences of and the incentives for outsourcing. We argue that the wage elasticity of labour … demand increases as a function of the share of outsourcing, which is a result consistent with existing empirical research …. Furthermore, we show that a production mode with a higher proportion of outsourcing activity reduces the negotiated wage in the …

We evaluate the effects of outsourcing and wage solidarity on wage formation and equilibrium unemployment in a … heterogeneous labour market, where wages are determined by a monopoly labour union. We find that outsourcing promotes the wage … magnify, and not dampen, this tendency. Further, higher outsourcing will increase equilibrium unemployment among the high …

distinguish between domestic and foreign sourcing, as well as between outsourcing and vertical integration. A firm’s choice is …