equilibrium where input sub-bundles may be traded (offshoring). The model allows for several goods and two fragments, produced … with high-skilled and low-skilled labor. I address wage and welfare effects under flexible wages, and under a minimum wage …. I also explore trade policy implications and compare offshoring to migration. …

development of wages and employment across skill groups, there is considerable disagreement to explain these trends, in particular …

. Such outsourcing leads to increased wages for the remaining in-house production. We find that stronger unions, which imply … higher domestic wages, reduce incentives for international outsourcing. Though somewhat surprising, this result provides a … theoretical reconciliation of the empirically observed trends of deunionization and increased international outsourcing in many …

knowledge sector is bounded, as productivity increases, the economy moves from a “Solovian zone“ where wages increase with … their bliss point can only be made better-off by an increase in diversity. If wages are set by monopoly unions rather than … always reduces employment in the material goods sector. International trade may reduce wages in poor countries and increase …

destructive part of creative destruction is a social cost and therefore biases our estimate of the impact of the innovation on NNP …

We show that, even with flexible domestic wages, international outsourcing may worsen the welfare of the home country … and reduce the profits of all firms. If wages are rigid, outsourcing is welfare-improving if and only if the sum of the … welfare. We also extend the model to a two-period framework. Delaying outsourcing can be gainful because the fixed cost of …

We develop a theory of a firm in an incomplete contracts environment which decides on its complexity, organization, and …

. It isshown that the factor-biased and the sector-biased impact ofinternational outsourcing discussed in the literature …

This paper provides an analysis of outsourcing and trade in a spatial model à la Hotelling. In this setting, we discuss … the trade-off between transport-cost-related disadvantages and outsourcing-induced production cost advantages of a large …