We construct a model of offshoring with externalities and firm heterogeneity. Due to thepresence of externalities …, temporary shocks like the Y2K problem can have permanenteffects, i.e., they can permanently raise the extent of offshoring in an … industry. Also, the initialadvantage of a country as a potential host for outsourcing activities can create a lock ineffect …

This paper investigates the effects of services offshoring on wages using individual level data combined with industry … information on offshoring. Our results show that services offshoring affects the real wage of low and medium skilled individuals …

In this paper, in order to study the impact of offshoring on sectoral and economywide rates ofunemployment, we … tooffshoring. This result can be understood to arise from the productivity enhancing (costreducing) effect of offshoring. If the … search cost is identical in the two sectors, or even if thesearch cost is higher in the sector which experiences offshoring …

This paper investigates empirically the link between international outsourcing and the skill structure of labour demand … in the United Kingdom. It is the first detailed study of this issue for the UK. Outsourcing is calculated using import … factor demands, our main results show that international outsourcing has had a strong negative impact on the demand for …

This paper presents an empirical analysis of "outsourcing" using establishment level data for UK manufacturing … industries. We analyse an establishment's decision to outsource and the subsequent effects of outsourcing on the establishment …'s productivity. We compare outsourcing in domestic with foreign-owned establishments. Our empirical results suggest that high wages …

Our paper investigates the link between international outsourcing and wages utilising a large household panel and … combining it with industry level information on industries' outsourcing activities from input-output tables. By doing so we can … outsourcing has had a marked impact on wages. Distinguishing three skill categories we find evidence that outsourcing reduced the …