In this paper we explore the role that demand uncertainty plays for the offshoring decision, and the role that … offshoring plays for domestic volatility of employment. Offshoring is modeled as in Antràs & Helpman (2004), but we assume … firm's employment decision in its domestic and offshore production. In this environment, offshoring is driven by …

We develop a theoretical framework to explain firms' offshoring decisions in the presence of uncertainty. This model … sharp prediction of the prevalence of offshoring in a given industry: The propensity of firms to source intermediate inputs … particularly pronounced in industries with higher volatility. Combining industry-level data on the U.S. offshoring intensity with …

This paper addresses outsourcing in the two-type optimal income tax model. If the government is able to control … outsourcing via a direct tax instrument, outsourcing will not affect the marginal income tax structure. In the absence of a direct … tax instrument, and under the plausible assumption that higher outsourcing increases the wage differential, the government …

production to the other. In the country whose firms outsource production abroad, the government will respond to outsourcing by … the absence of outsourcing. The tax policy response by the government in the country that receives foreign production …

contains a set of theoretical papers on the distributional effects of offshoring. …

In today’s globalized economy, firms often consider offshoring when confronted by rising costs and fierce competition …. One mode of offshoring has continued to grow despite the current global economic turmoil: the captive center. Captive …-office activities. In Offshoring Strategies, Ilan Oshri examines the evolution of the captive center. He identifies basic captive center …

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 …

The policy debate views offshoring as job destruction. Theoretical models of offshoring mostly assume full employment …-monotonic adjustment: Early stages of offshoring always lead to higher unemployment, while later stages may entail net job creation. We …

In this paper, we explore the role of trade in differentiated final goods as well offshoring of tasks for inequality …