) on employment changes and worker mobility in Germany. A composite measure of offshorability for German data is used which … employment creation is higher in non-offshorable occupations. Furthermore, both hiring and job separation rates decline with … leaving employment to other labour market states is higher if their jobs are more offshorable. …

Offshoring of US jobs is controversial. Critics fear that offshoring will lead to lost jobs and lower domestic wages at … into offshoring. Given a shock that lowers offshoring costs, the theory predicts that domestic wages rise at firms that … offshore relative to domestic wages at firms that do not. The theory also predicts that domestic employment could rise or fall …