In New Trade Theory models, the larger region hosts an overproportionate share of producers. This Home Market Effect …

We examine the effects of endogenous offshoring on cost-efficiency, wages and unemployment in a task-assignment model … with skill heterogeneity. Exact conditions for the following insights are derived. The distributional effect of offshoring … (high-) low-skill-intensive tasks is similar to (unskilled-) skill-biased technology changes, while offshoring medium …

studies conducted so far focus alone on the productivity effects of offshoring at the firm level. Here I carry out the …. On the other hand, positive effects on the growth rate of productivity are found as a result of both types of offshoring … percentage points for services and 0.48 to 0.64 for materials. -- offshoring ; Japan ; employment ; productivity …

margin, with domestic employment shifted from the newly offshoring firms in the middle of the productivity distribution to … labour across firms affects economy-wide unemployment. Offshoring reduces unemployment when it is confined to high-productivity … firms, while this outcome is not guaranteed when offshoring is also chosen by low-productivity firms. …

In this paper we explore the role that demand uncertainty plays for the offshoring decision, and the role that … offshoring plays for domestic volatility of employment. Offshoring is modeled as in Antràs & Helpman (2004), but we assume … firm's employment decision in its domestic and offshore production. In this environment, offshoring is driven by …

show that they increase with firm's output and market size. We find that wage rises with firm's productivity, but fall with …

analysis to disentangle the employment effects of changes in labour productivity, technical input coefficients and final demand … (products) of the economy and thus also includes employment effects of service offshoring. Third, we also calculate the …

This paper provides new evidence on how offshoring shifts relative labor demand for tasks at the industry level. A … novel theoretical mechanism, based on sorting of heterogeneous workers into occupations with task dependent offshoring cost …, guides estimation. Cost shares of tasks are linked to offshoring in a panel estimation using German data for 1998-2007. It is …

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 …