arm’s length. The model further implies that firms are more likely to offshore when frictions in the provision of services …

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 …

quantity, quality and distribution of human services, such as education and health care …