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 …

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 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 …

Using microdata, we analyse the determinants of firm relocation and outsourcing decisionsand their effects on firms …

We evaluate the effects of outsourcing and wage solidarity on wage formation andequilibrium unemployment in a … heterogeneous labour market, where wages are determinedby a monopoly labour union. We find that outsourcing promotes the wage …

We study both the various consequences and the incentives of outsourcing. We argue thatthe wage elasticity of labour … demand is increasing as a function of the share of outsourcing,which is importantly a result consistent with existing …

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 …

outsourcing service functions previously provided within the firm, performed worse. In sum, our findings support the view that … firms tend to overestimate the benefits accruing from outsourcing of services previously provided internally. …