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 …

This paper assesses the impact of international outsourcing/offshoring practices on the process of wage equalization … outsourcing/offshoring indices based on input-output data (World Input Output Database, April 2012 release). Two-way relations … between trade and wages are addressed through the use of a gravity-based sector-level instrument. We find no evidence …

Minimum wages, global markets, unemployment …