This article explores the impact of innovation, offshoring and demand on profits and wage dynamics. The growing … highlights the contrasting effects of R&D and offshoring as wage determinants - the former exerts a positive effect while the …-skilled workers are favored by both innovation and offshoring, offshoring exerts downward pressure primarily on low-skilled wages (not …

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 …

While most of the offshoring literature focuses on the effects on relative wages, other implications do not receive the … industry where offshoring takes place. If offshoring takes place in high-skill intensive industries, the high-skill labor ratio … increases (vice versa if offshoring takes place in low-skill intensive industries). Results are in line with other empirical …

fixed offshoring costs. In the skill-abundant country, high-productivity firms offshore a larger range of labor … 2007, we provide empirical support for the factor proportions channel through which offshoring to labor-abundant countries …

The subject of offshoring and productivity has not yet received the attention it deserves. Here I propose a simple …-series perspective. This framework is then used to assess the impact of offshoring on skill upgrading and the labor share. For both … should be interpreted with caution yet clearly suggest that offshoring can improve labor productivity in the semiconductors …

This paper provides new evidence on how offshoring shifts relative labor demand for tasks at the industry level. A … novel theoretical mechanism, based on sorting of heterogeneous workers into occupations with task dependent offshoring cost …, guides estimation. Cost shares of tasks are linked to offshoring in a panel estimation using German data for 1998-2007. It is …

We set up a general equilibrium model, in which offshoring to a low-wage country can lead to job polarisation in the … pay wages that are positively linked to their profits by a rent-sharing mechanism. Offshoring involves fixed and task … variable offshoring costs. A reduction in those variable costs increases offshoring at the intensive and at the extensive …

fixed offshoring costs. In the skill-abundant country, high-productivity firms offshore a larger range of labor … 2007, we provide empirical support for the factor proportions channel through which offshoring to labor …