The impact of offshoring on domestic jobs is more complicated than it first appears. In the standard narrative …, offshoring production is thought to harm domestic workers by providing cheap alternative sources of labor. However, while … offshoring may directly displace domestic workers, the resulting foreign market access and lower production costs allow domestic …

to workers’ incomes and employment, while firms that import intermediate production stages (“offshoring”) display bigger … employment responses to small changes in workers’ wages, and are more likely to shut down home factories. But offshoring also … helps firms weather economic shocks. Offshoring firms are more likely to survive and provide greater employment stability to …

international trade. Offshoring-the cross-border trade in intermediate goods and services which facilitate country …

This paper attempts to quantify the impact of fragmentation on employment. Factor demand functions for labour and … in import prices (real trade costs) has a twofold impact on labour demand: (i) substitution of domestic employment by … partly imported intermediates (= outsourcing or fragmentation) (ii) increased employment due to higher demand caused by an …