We discuss the effects of offshoring on the labor market in a matching model with endogenous adjustment of educational … skills. We carry out a comparative statics analysis and show that offshoring leads to a restructuring of the economy through … skill-biased technical change (SBTC) where overall welfare is improved. In a policy exercise we show that, if offshoring …

explanation is at odds with the sequence of observed facts. We propose and model an alternative scenario in which offshoring …

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 …

We present a global production sharing model that integrates the organizational choices of offshoring into the … determination of relative wages in developing countries. The model shows that offshoring through foreign direct investment … contributes more prominently than arm's length outsourcing to the demand for skill in the South, thereby increasing the relative …

We discuss the effects of low-skill offshoring on the endogenous schooling decision of workers along with the potential …-deteriorating effects of offshoring. As a result, we aim at restoring welfare by increasing the opportunity cost of staying low-skill. In … offshoring that befall those in the lowest end of the skill ladder. …

evidence that suggests that the increase in non-routine cognitive workplaces is linked to the growth in outsourcing of …

to contracting firms. For this end we develop a new method for identifying outsourcing of food, cleaning, security and … growth of domestic outsourcing in Germany since the early 1990s. Event-study analyses show that wages in outsourced jobs fall … associated with outsourcing stem from a loss of firm-specific rents, suggesting that labor cost savings are an important reason …