Estimating the causal effect of offshoring on domestic employment is difficult because of the inherent simultaneity of …. Underlying these results is substantial heterogeneity based on offshoring margin and firm organizational structure. For example …

We use firm-level data on U.S. multinationals to show how offshoring affects domestic employment within and across … firms. We introduce a new instrument for offshoring: Bilateral Tax Treaties, which reduce the cost of offshore activities … in employment at the U.S. parent firm, with smaller effects at the industry and regional levels. In contrast, offshoring …