improvements in the informal sector expand both offshoring and outsourcing, and the developed nation wage must rise. When the …We present a model of offshoring of tasks to a developing nation, which is characterized by a minimum wage formal … informal sector. An improvement in the productivity in performing offshored tasks in the developing country raises offshoring …

The various channels through which a reduction in the cost of offshoring can improve wages in a developed country are … by now well understood. But does a similar reduction in the offshoring cost also benefit workers in the world's factories … in developing countries? Using a parsimonious two-country model of offshoring we find very nuanced results. These include …

"This paper investigates empirically the link between international outsourcing and the skill structure of labour … demand in the United Kingdom. It is the first detailed study of this issue for the UK. Outsourcing is calculated using import … factor demands, our main results show that international outsourcing has had a strong negative impact on the demand for …