industrialization of goods production. We focus on the effect of industrialization on employment and wages, and identify certain …

Offshoring of US jobs is controversial. Critics fear that offshoring will lead to lost jobs and lower domestic wages at … into offshoring. Given a shock that lowers offshoring costs, the theory predicts that domestic wages rise at firms that … offshore relative to domestic wages at firms that do not. The theory also predicts that domestic employment could rise or fall …