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 …

wages is explained by changes in wage setting between and within occupations, which are well captured by tasks measures …

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 …

decreases. Next we allow for offshoring of unskilled jobs in our model, and we find that, as a result, it becomes more likely … that the fair-wage constraint binds. Offshoring of unskilled jobs always leads to an increase in skilled wage, a decrease … adverse impact of offshoring on unskilled unemployment. The unskilled wage can increase or decrease as a result of offshoring …

The analysis of the effects of firm-level international trade on wages has so far focused on the role of exports, which … trade and wages across types of products. In particular, firms that increase their exports (imports) of high- (intermediate …

Neoclassical trade theory suggests that factor price convergence should follow increased commercial integration. Rising …

Wages grow but also become more unequal as workers age. Using German administrative data, we largely attribute both …