faster task offshoring in sectors exposed to lower labour-market tightness. We discuss policy implications of these findings. …

model with search unemployment of high- and low-skilled labor, we simulate the effects of enlargement on Germany finding …

fixed offshoring costs. In the skill-abundant country, high-productivity firms offshore a larger range of labor … 2007, we provide empirical support for the factor proportions channel through which offshoring to labor-abundant countries …

) 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 …