This paper extends the literature on the implications of offshoring for labour markets by investigating its effect on … international trade in manufacturing inputs. Being particularly interested in the wage effects of offshoring to low wage countries … (LWC), we employ precise LWC classifications (varying across industries and time) to decompose overall offshoring by source …

- cancy subsidy, a layoff tax and unemployment benefits. We derive analytical expressions for the optimal setting of each of … replacement rate of unemployment insurance should all rise in recessions. We find this confirmed in a calibration targeted to the …

fixed offshoring costs. In the skill-abundant country, high-productivity firms offshore a larger range of labor … 2007, we provide empirical support for the factor proportions channel through which offshoring to labor …

and sales compared to more exposed firms. We do not find significant differences for export volumes to the UK or elsewhere …

This paper assesses the impact of international outsourcing/offshoring practices on the process of wage equalization … outsourcing/offshoring indices based on input-output data (World Input Output Database, April 2012 release). Two-way relations … indicate that offshoring reduces the wage growth of domestic medium- and low-skilled workers, we show that this negative effect …