This paper studies the impact of outsourcing on individual wages. In contrast to the standard approach in the … literature, we focus on domestic outsourcing as well as foreign outsourcing. By using a simple theoretical model, we argue that …, if outsourcing is associated with specialization gains arising from an increase in the division of labor, domestic …

of intrafirm imports from that region. These factors also favor outsourcing over offshoring. In contrast, low … alternative suppliers in Eastern Europe) favor offshoring over outsourcing. Tax holidays granted by host countries in Eastern …

the level of intra-firm imports from Eastern Europe. They are also favoring outsourcing over offshoring. Low … alternative suppliers in Eastern Europe) are favoring offshoring over outsourcing. Tax holidays granted by host countries in …