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 …