Schmerer, Hans-Jörg; Capuano, Stella; Egger, Hartmut; … - 2015
We set up a model of offshoring with heterogeneous producers that captures two empirical regularities on offshoring … firms: larger, more productive firms are more likely to make use of the offshoring opportunity; the fraction of firms that … engages in offshoring is positive and smaller than one in any size or revenue category. These patterns generate an overlap of …