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 …

Recent contributions on offshoring often assume that firms can freely split their production process into separate … technologically determined sequence of production steps. In our model, cost savings from offshoring fluctuate along the production … from offshoring even if relocating individual steps would be advantageous. Conversely, small variations in model parameters …