In this paper, we explore the role of trade in differentiated final goods as well offshoring of tasks for inequality …

In this paper we explore the role that demand uncertainty plays for the offshoring decision, and the role that … offshoring plays for domestic volatility of employment. Offshoring is modeled as in Antràs & Helpman (2004), but we assume … firm’s employment decision in its domestic and offshore production. In this environment, offshoring is driven by …

We develop a theoretical framework to explain firms’ offshoring decisions in the presence of uncertainty. This model … sharp prediction of the prevalence of offshoring in a given industry: The propensity of firms to source intermediate inputs … particularly pronounced in industries with higher volatility. Combining industry-level data on the U.S. offshoring intensity with …

integration and outsourcing and how this effect depends on the relative input intensity of the production process. The prediction … strongly in favor of vertical integration, and against outsourcing, in more headquarter-intensive industries. …

input supplier (vertical integration vs. outsourcing), as well as the location of intermediate input production (offshore vs … intensity, but favors outsourcing in industries of high sourcing intensity. Moreover, we find that productivity boosts … offshoring throughout all industries, with the effect increasing monotonically in the sourcing intensity. Our results lend strong …

integration and outsourcing and how this effect depends on the relative input intensity of the production process. The prediction … strongly in favor of vertical integration, and against outsourcing, in more headquarter-intensive industries …