This paper estimates the effects of offshoring on labour market inequalities between skill groups based on German … industry level data from 1995 to 2007. Our main findings are the following: First, offshoring is on average biased in favour of … sector, material offshoring, and offshoring to Central and Eastern Europe. Second, we find that the labour market adjusts to …

rise in offshoring and low-skilled immigration, and we develop a three-country stochastic growth model to rationalize this … outcome. In the model, the increase in offshoring negatively affects the middle-skill occupations but benefits the high …