Sethupathy, Guru - In: European Economic Review 62 (2013) C, pp. 73-97
This paper investigates the wage and employment effects of offshoring. I use firm-level data and two events in Mexico … as a natural experiment to identify the effects of a fall in the marginal cost of offshoring to Mexico. I find that … domestic wages actually rise at US firms likely to take advantage of this new offshoring opportunity. At the same time …