parsimonious two-country model of offshoring we find very nuanced results. These include cases where wages monotonically improve …, worsen, as well as where wages exhibit an inverted U-shaped relationship with the offshoring cost. We identify qualitative …Does a reduction in offshoring cost benefit workers in the world's factories in developing countries? Using a …

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 …

We construct a model of offshoring with externalities and firm heterogeneity. Due to the presence of externalities …, temporary shocks like the Y2K problem can have permanent effects, i.e., they can permanently raise the extent of offshoring in … externalities can help explain the dynamic process of offshoring, where the most productive firms offshore first and the others …