explanation is at odds with the sequence of observed facts. We propose and model an alternative scenario in which offshoring …

. Buyouts reduce agency problems, which triggers automation, offshoring, and tougher bargaining with labor unions. We show that …

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, in order to study the impact of offshoring on sectoral and economywide rates of unemployment, we … offshoring. This result can be understood to arise from the productivity enhancing (cost reducing) effect of offshoring. If the … search cost is identical in the two sectors, or even if the search cost is higher in the sector which experiences offshoring …

the cost of offshoring and unemployment. Starting from a high cost of offshoring, a decrease in the cost of offshoring … reduces unemployment first and then increases it. The non-monotonicity of unemployment in the cost of offshoring does not … between the cost of offshoring and unemployment is verified through a calibration exercise performed using parameters for …