The various channels through which a reduction in the cost of offshoring can improve wages in a developed country are …-shaped relationship in response to parametric reductions in the cost of offshoring. We identify qualitative conditions under which wages … by now well understood. But does a similar reduction in the offshoring cost also benefit workers in the world's factories …

The various channels through which a reduction in the cost of offshoring can improve wages in a developed country are … response to parametric reductions in the cost of offshoring. We identify qualitative conditions under which wages and welfare … by now well understood. But does a similar reduction in the offshoring cost also benefit workers in the world's factories …

This paper sets up a two-country model of offshoring with monopolistically competitive product and monopsonistically … competitive labour markets. In our model, an incentive for offshoring exists even between symmetric countries, because shifting … labour market power. However, offshoring between symmetric countries has negative welfare effects and therefore calls for …

offshoring. In this second-best world, a revenue-neutral decrease in the progressivity of the tax schedule promotes higher … redistribution to an increasing share of lower-wage workers. However, as the tax reform involves an increase in the offshoring …