Ricardian model of offshoring. A unique final good is produced by combining a skilled and an unskilled product, each produced …-scarce East. Profit maximization determines both the extent of offshoring and technological progress. Offshoring induces skill … relevant case, starting from low levels, an increase in offshoring opportunities triggers a transition with falling real wages …

possibility that freer trade also alters the firm-size distribution via international firm migration (offshoring); firms must, by …

mechanism ndash; spaghetti bowls as building blocs ndash; whereby offshoring creates a force that encourages the …

In traditional signaling models, education provides a way for individuals to sort themselves by ability. Employers in … turn use education to statistically discriminate, paying wages that reflect the average productivity of workers with the … same given level of education. In this paper, we provide evidence that education (specifically, attending college) plays a …

) declined significantly. At the same time, the returns to education increased. It has been suggested that these two trends may … differentials and returns to education over the 1980-2000 period. In parallel to the aggregate pattern, we find that male …-female wage differentials at the city levels moved in opposite direction to the changes in the return to education. We also find …