We present a model of offshoring of tasks to a developing nation, which is characterized by a minimum wage formal … informal sector. An improvement in the productivity in performing offshored tasks in the developing country raises offshoring … improvements in the informal sector expand both offshoring and outsourcing, and the developed nation wage must rise. When the …

The various channels through which a reduction in the cost of offshoring can improve wages in a developed country are … by now well understood. But does a similar reduction in the offshoring cost also benefit workers in the world's factories … in developing countries? Using a parsimonious two-country model of offshoring we find very nuanced results. These include …

Does a reduction in offshoring cost benefit workers in the world's factories in developing countries? Using a … parsimonious two-country model of offshoring we find very nuanced results. These include cases where wages monotonically improve …, worsen, as well as where wages exhibit an inverted U-shaped relationship with the offshoring cost. We identify qualitative …

We present a model of offshoring of tasks to a developing nation characterized by a minimum-wage formal sector and a …

The various channels through which a reduction in the cost of offshoring can improve wages in a developed country are … by now well understood. But does a similar reduction in the offshoring cost also benefit workers in the world's factories … in developing countries? Using a parsimonious two-country model of offshoring, we find very nuanced results. These …