This paper estimates the effects of offshoring on labour market inequalities between skill groups based on German … industry level data from 1995 to 2007. Our main findings are the following: First, offshoring is on average biased in favour of … sector, material offshoring, and offshoring to Central and Eastern Europe. Second, we find that the labour market adjusts to …

offshoring on the labor market can substantially deviate from standard neoclassical conclusions when search frictions hinder … exploiting offshoring. It implies that automation (offshoring) may reduce (raise) employment by lengthening (shortening …