and the offshoring of tasks. At the firm-level, exporting leads to higher wages and employment, while offshoring of … production tasks reduces the wages paid to unskilled workers as well as their domestic employment. At the aggregate level, trade … firms restrict employment to keep wages low, resulting in too many firms that are on average too small. Offshoring on the …

fragmentation. We also explore how preferences for fair wages and the size of unemployment benefits govern the employment effects of …