This article explores the impact of innovation, offshoring and demand on profits and wage dynamics. The growing … highlights the contrasting effects of R&D and offshoring as wage determinants - the former exerts a positive effect while the …-skilled workers are favored by both innovation and offshoring, offshoring exerts downward pressure primarily on low-skilled wages (not …

The impact of offshoring on domestic jobs is more complicated than it first appears. In the standard narrative …, offshoring production is thought to harm domestic workers by providing cheap alternative sources of labor. However, while … offshoring may directly displace domestic workers, the resulting foreign market access and lower production costs allow domestic …

While most of the offshoring literature focuses on the effects on relative wages, other implications do not receive the … industry where offshoring takes place. If offshoring takes place in high-skill intensive industries, the high-skill labor ratio … increases (vice versa if offshoring takes place in low-skill intensive industries). Results are in line with other empirical …