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

The paper investigates the relationship between offshoring, wages, and the ease with which individuals' tasks can be … suitability of a task for offshoring and the associated skill level. Accordingly, wage effects of offshoring can be very … on offshoring. Our main results suggest that in partial equilibrium, wage effects of offshoring are fairly modest but far …

We provide a comprehensive empirical analysis of the links between international services outsourcing, domestic … outsourcing, profits and innovation using plant level data. We find a positive effect of international outsourcing of services on … innovative activity at the plant level. Such a positive effect can also be observed for domestic outsourcing of services, but the …

decreases. Next we allow for offshoring of unskilled jobs in our model, and we find that, as a result, it becomes more likely … that the fair-wage constraint binds. Offshoring of unskilled jobs always leads to an increase in skilled wage, a decrease … adverse impact of offshoring on unskilled unemployment. The unskilled wage can increase or decrease as a result of offshoring. …

unemployment decreases upon offshoring in the presence of perfect intersectoral labor mobility. If, as a result, labor moves to the … intersectoral labor mobility, unemployment in the offshoring sector can rise, with an unambiguous unemployment reduction in the non-offshoring …

We investigate the impact of offshoring on individual level wages and unemployment probabilities and pay particular …. Data are taken from the German Socio-Economic Panel (SOEP), linked with industry-level data on offshoring of materials and … significant reduction in wages as materials offshoring increases, while permanent workers' wages are unaffected or even tend to …

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

We evaluate the effects of outsourcing and wage solidarity on wage formation and equilibrium unemployment in a … heterogeneous labour market, where wages are determined by a monopoly labour union. We find that outsourcing promotes the wage … magnify, and not dampen, this tendency. Further, higher outsourcing will increase equilibrium unemployment among the high …

international outsourcing. It is the first detailed study to address the effects of outsourcing on labour markets in the UK. In a … recent paper, Feenstra and Hanson (1996) estimate the effect of international outsourcing on wage inequality in the US. This … paper extends the FH approach by using more detailed definitions of outsourcing and skill. The analysis applies to UK …

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 …