I provide new empirical evidence on the direct and indirect impact of services offshoring on local employment and wages …, using a unique dataset on firms in the UK for the period 2000-2015. Exploiting variation in firms' services offshoring … across labour markets, I show positive aggregate local labour employment and wage elasticity to services offshoring …

While there is a consensus in the literature that offshoring has a polarising effect on the skill structure of labour … demand, little is known about its impact on the capital side. In this paper, we analyse the effect of offshoring on the …, we document that offshoring reduces the relative demand for non-ICT capital, thereby also polarising the demand for …