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 …

First moves towards a real understanding of offshoring date back to very recent times. In particular for Japan, the … studies conducted so far focus alone on the productivity effects of offshoring at the firm level. Here I carry out the …-2005. Moreover, I consider all industries within the economy and take account of both services and materials offshoring. My results …