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 … an industry. Also, the initial advantage of a country as a potential host for outsourcing activities can create a lock in …

from a low-wage country. Offshoring an intermediate is only profitable when it has matured sufficiently and the savings in … for parts that are only exported later, consistent with offshoring becoming gradually more difficult. …

This paper challenges the conventional academic view that international outsourcing is just another form of gainful … trade. Contrary to this view, we show that labor-service outsourcing can reduce the high-wage country's welfare even when …. Outsourcing's impact on welfare is worsened by a definite loss of jobs and a possible contraction in the range of varieties …

offshoring to unregulated jurisdictions. We first apply an analytical partial-equilibrium model of a two-stage production process …

offshoring to unregulated jurisdictions. We first apply an analytical partial-equilibrium model of a two-stage production process …

This paper explores the effects of outsourcing on employee well-being through the use of the Finnish linked employer …-employee data. The direct negative effect of outsourcing is attributable to greater job destruction and worker outflow. In terms of … perceived well-being, the winners in international outsourcing are those who are capable of performing interactive tasks (i …

This paper examines the relationship between outsourcing and various aspects of employee well-being by devoting special … offshoring involves job destruction, especially when the destination is a low-wage country. In such circumstances, staying … employees' job satisfaction is reduced. However, the relationship between outsourcing and employee well-being is not entirely …