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 …

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 …

) 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 …

premium as well as on international inequality measured in income per head. We compare these effects in a world where trade is …In this paper, we explore the role of trade in differentiated final goods as well offshoring of tasks for inequality … restricted to differentiated final goods with a world with trade in both final goods and production tasks …

pay wages that are positively linked to their profits by a rent-sharing mechanism. Offshoring involves fixed and task …We set up a general equilibrium model, in which offshoring to a low-wage country can lead to job polarisation in the … variable offshoring costs. A reduction in those variable costs increases offshoring at the intensive and at the extensive …

We study the relation between the off-shoring of intermediates and services and productivity growth in the Italian … manufacturing industries in 1995-2003. Our results indicate that the off-shoring of intermediates within the same industry ("narrow … off-shoring") is beneficial for productivity growth, while the off-shoring of services is not. We also find that the way …

increases from the tradable to the non-tradable sector and to cause real wages to increase beyond productivity increases. Panel …

The paper scrutinizes the role of wages and capital flows for competitiveness in the new EU member states in the …