international outsourcing. It is the first detailed study to address the effects of outsourcing on labour markets in the UK. In a … recent paper, Feenstra and Hanson (1996) estimate the effect of international outsourcing on wage inequality in the US. This … paper extends the FH approach by using more detailed definitions of outsourcing and skill. The analysis applies to UK …

by the cost of task trade. Comparing orders of magnitude we conclude that offshoring between similar countries only has a … small positive effect on the managerial wage premium, compared to offshoring between countries with a different relative …