Mitra, Devashish; Ranjan, Priya - Forschungsinstitut zur Zukunft der Arbeit <Bonn> - 2007
In this paper, in order to study the impact of offshoring on sectoral and economywide rates ofunemployment, we … construct a two sector general equilibrium model in which labor is mobileacross the two sectors, and unemployment is caused by … search frictions. We find that,contrary to general perception, wage increases and sectoral unemployment decreases due …