This paper shows that outsourcing of parts of the workforce in unionized firms leads to wage moderation and as long as the share of the outsourced workforce is not too large, this wage-moderation effect on domestic employment outweighs the direct substitution effect so that domestic employment...

We study whether reallocating existing teachers across schools within a district can increase student achievement, and what policies would help achieve these gains. Using a model of multidimensional value-added, we find meaningful achievement gains from reallocating teachers within a district....