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 …

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 …

Economic globalization causes an increasing international fragmentation of value-added chains. A question often raised … is whether such outsourcing affects domestic income distribution. The paper provides a theoretical treatment of this …, factors, and fragments, and by formally specifying a fragmentation technology. It defines a margin of international …

I develop a generalized factor price frontier which incorporates endogenous adjustment of international fragmentation …. The paper identifies conditions under which outsourcing to a low-wage country is a "friend" or an "enemy" to domestic …