chapter compares the impact of international trade in intermediate inputs (offshoring) on wage inequality in two distinct but … similar frameworks. In the first framework the profitability of offshoring is based on increasing returns to scale on the task …-level, whereas the second framework relies on differences in relative factor endowments of the two countries involved in offshoring …

This paper studies how firms' offshoring decisions shape a country's domestic production networks. We develop a model … foreign suppliers, due to costly communication. Triggered by foreign countries' export supply shocks, firms start offshoring … net effect of offshoring on a firm’s domestic production networks depends on the relative strength of the three effects …

This paper assesses the impact of international outsourcing/offshoring practices on the process of wage equalization … outsourcing/offshoring indices based on input-output data (World Input Output Database, April 2012 release). Two-way relations … place, but international outsourcing plays a negligible role in wage equalization. Moreover, even though regression results …