world regions experience small reductions of GDP due to trade diversion effects. …

) can offshore routine tasks to a low-wage host country. The most productive firms self-select into offshoring, and the … impact on welfare in the source country can be positive or negative, depending on the share of firms engaged in offshoring … among entrepreneurs is higher with offshoring than in autarky. All results hold in a model extension with firm-level rent …

In this paper, we explore the role of trade in differentiated final goods as well offshoring of tasks for inequality … premium as well as on international inequality measured in income per head. We compare these effects in a world where trade is … restricted to differentiated final goods with a world with trade in both final goods and production tasks. …

labor market frictions to study the impact of offshoring on intrafirm, intrasectoral, and intersectoral reallocation of jobs …, and on the economy-wide unemployment rate. A reduction in the offshoring cost affects intrafirm and intrasectoral …. The key parameters determining the impact of offshoring on reallocation of jobs at various margins as well as on the …