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 shows that outsourcing of parts of workforce in unionized firms leads to wage moderation both in the case of … strategic and flexible outsourcing and as long as the share of the outsourced workforce is not too large, this wage … firms as outsourcing costs fall... …

We evaluate the effects of international outsourcing and labor taxation on wage formation and equilibrium unemployment … in dual labor markets. Outsourcing promotes wage dispersion between the high-skilled and low-skilled workers. Higher … domestic low-skilled wage tax, higher payroll tax and lower wage tax exemption increase optimal outsourcing... …

This paper studies in the presence of flexible outsourcing the effects of outsourcing costs, productivity of … outsourcing, wage tax and tax exemption in an imperfectly competitive labour markets when labour unions and firms negotiate wages …

We analyze the following questions associated with outsourcing and profit sharing under imperfect labour markets. How … does strategic outsourcing influence wage formation, profit sharing and employee effort when firms commit to optimal profit … sharing before wage formation or decide for profit sharing after wage formation? What is the relationship between outsourcing …

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 …