We discuss the effects of offshoring on the labor market in a matching model with endogenous adjustment of educational … skills. We carry out a comparative statics analysis and show that offshoring leads to a restructuring of the economy through … skill-biased technical change (SBTC) where overall welfare is improved. In a policy exercise we show that, if offshoring …

After a decade in which wages and employment fell precipitously in low-skill occupations and expanded in high …-skill occupations, the shape of U.S. earnings and job growth sharply polarized in the 1990s. Employment shares and relative earnings … rose in both low and high-skill jobs, leading to a distinct U-shaped relationship between skill levels and employment and …

inequality and employment. To this end, we use annual data for the US, UK and Sweden over the past forty years and estimate … contributions of the labour share to the trajectories of inequality and employment during specific time intervals in the post-1990 … years. We find that during the nineties the cost of a one percent increase in employment was in the range of 0 …

In the US labor market the average black worker is exposed to a lower employment rate and earns a lower wage compared … the distribution of workers' skill. In particular, they argue that black-white wage and employment gaps are smaller for … prejudice is quantitatively more important than skill differences to explain wage and employment gaps. In the final section of …

influence the labour market performance of skilled immigrants. Our estimates point to improvements in employment rates and …

exploiting offshoring. It implies that automation (offshoring) may reduce (raise) employment by lengthening (shortening … offshoring on the labor market can substantially deviate from standard neoclassical conclusions when search frictions hinder …

We discuss the effects of low-skill offshoring on the endogenous schooling decision of workers along with the potential …-deteriorating effects of offshoring. As a result, we aim at restoring welfare by increasing the opportunity cost of staying low-skill. In … offshoring that befall those in the lowest end of the skill ladder. …

This paper studies the relationship between immigration and offshoring by examining whether an influx of foreign … of immigrants into a municipality reduces firm-level offshoring at both the extensive and intensive margins. The fact … that immigration and offshoring are substitutes has important policy implications, since restrictions on one may encourage …

We present a global production sharing model that integrates the organizational choices of offshoring into the … determination of relative wages in developing countries. The model shows that offshoring through foreign direct investment …

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 offshoring 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 …