) can offshore routine tasks to a low-wage host country. The most productive firms self-select into offshoring, and the … impact on welfare in the source country can be positive or negative, depending on the share of firms engaged in offshoring … among entrepreneurs is higher with offshoring than in autarky. All results hold in a model extension with firm-level rent …

The study proves evidence of five new empirical facts on the impact of services offshoring on local labour markets …. First, services offshoring increases average employment and wages within local labour markets, much more so in the … manufacturing industry than in the services one. Second, positive effects are both on firms directly offshoring services and on non-offshoring …

The offshoring of production by multinational firms has expanded dramatically in recent decades, increasing these firms … probability. We also show that a firm’s probability of offshoring increases with the share of its employees who are immigrants …

markets through exporting and through offshoring, and we show that due to monopsonistic competition our model makes sharply … and the offshoring of tasks. At the firm-level, exporting leads to higher wages and employment, while offshoring of … firms restrict employment to keep wages low, resulting in too many firms that are on average too small. Offshoring on the …

selling abroad. Because offshoring requires larger sunk costs than domestic sourcing, some firms decide to offshore only when … between the domestic and the foreign market are greater. In turn, offshoring firms sell greater volumes, display less …

labor market effects of offshoring. While theory focuses on one-sector or two-sector models, empirical studies exploit … variation in offshoring across a large number of industries, typically including a linear offshoring term in the analysis …. Thereby, these studies implicitly assume a monotonic relationship between offshoring and labor market outcomes and ignore …