The extent and structure of outsourcing and offshoring since 1971 is examined in this paper. Official statistics show …. Business cycle influences on the development of outsourcing and offshoring are low. Outsourcing varies by sector and size of … intermediate inputs and the wage ratio suggests that labor costs as a reason to outsourcing has decreased. Also, offshoring has …

The impact of offshoring on domestic jobs is more complicated than it first appears. In the standard narrative …, offshoring production is thought to harm domestic workers by providing cheap alternative sources of labor. However, while … offshoring may directly displace domestic workers, the resulting foreign market access and lower production costs allow domestic …

to workers’ incomes and employment, while firms that import intermediate production stages (“offshoring”) display bigger … employment responses to small changes in workers’ wages, and are more likely to shut down home factories. But offshoring also … helps firms weather economic shocks. Offshoring firms are more likely to survive and provide greater employment stability to …