We provide a comprehensive empirical analysis of the links between international services outsourcing, domestic … outsourcing, profits and innovation using plant level data. We find a positive effect of international outsourcing of services on … innovative activity at the plant level. Such a positive effect can also be observed for domestic outsourcing of services, but the …

This paper investigates the effects of services offshoring on wages using individual level data combined with industry … information on offshoring. Our results show that services ofsshoring affects the real wage of low and medium skilled individuals … negatively. By contrast, skilled workers benefit from services offshoring in terms of higher real wages. Hence, offshoring has …

multinationals, are less likely to rely on imported or internally provided services. -- international trade ; services ; off-shoring …

. Such outsourcing leads to increased wages for the remaining inhouse production. We find that stronger unions, which imply … higher domestic wages, reduce incentives for international outsourcing. Though somewhat surprising, this result provides a … theoretical reconciliation of the empirically observed trends of deunionization and increased international outsourcing in many …