Ricardian model of offshoring. A unique final good is produced by combining a skilled and an unskilled product, each produced …-scarce East. Profit maximization determines both the extent of offshoring and technological progress. Offshoring induces skill … relevant case, starting from low levels, an increase in offshoring opportunities triggers a transition with falling real wages …

employment opportunities for which they have comparative advantage. This framework yields a simple equation linking wage changes … offshoring) rather than those of rising market power, markups or deunionization, which themselves do not appear to play a major …