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

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 …

This paper sets up a two-country model of offshoring with monopolistically competitive product and monopsonistically … competitive labour markets. In our model, an incentive for offshoring exists even between symmetric countries, because shifting … labour market power. However, offshoring between symmetric countries has negative welfare effects and therefore calls for …

) 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 …

the equilibrium with an informal sector. -- offshoring ; informal sector ; maquiladoras ; trade and labor markets ; Mexico …

labor market effects of offshoring. While theory focuses on one-sector or two-sector models, empirical studies exploit … variation in offshoring across a large number of industries, typically including a linear offshoring term in the analysis …. Thereby, these studies implicitly assume a monotonic relationship between offshoring and labor market outcomes and ignore …

unique panel data evidence of the 500 largest firms in Germany in the period 1977-2009 we test two prominent hypothesis in …The compensation of executive board members in Germany has become a highly controversial topic since Vodafone's hostile … manager power hypothesis for Germany as executives tend to be rewarded when the sector is doing well rather than the firm they …