The various channels through which a reduction in the cost of offshoring can improve wages in a developed country are … response to parametric reductions in the cost of offshoring. We identify qualitative conditions under which wages and welfare … by now well understood. But does a similar reduction in the offshoring cost also benefit workers in the world's factories …

We construct a model of offshoring with externalities and firm heterogeneity. Due to the presence of externalities …, temporary shocks like the Y2K problem can have permanent effects, i.e., they can permanently raise the extent of offshoring in … externalities can help explain the dynamic process of offshoring, where the most productive firms offshore first and the others …

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 …

local labor market effects (wages and informality) and estimates from wage equations that reflect the predictions from long …-run, general-equilibrium neoclassical trade theory. As in other studies, we find that the export shock was localized both in terms … of sector and geography. Wages increased and informality decreased in sub-districts more exposed to the export shock …

We analyze the effect of low-skill workers offshoring on the welfare of the economy. In the context of a matching model … offshoring, namely, an increase of the unemployment benefits and the flexibilization of the labor market. Our results suggest … unemployment benefits to compensate for the negative welfare effects of offshoring, it would only take a small reduction in the …

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 …