I propose a "technology channel" through which imports of low-skilled intermediates (offshoring) benefit both skilled and unskilled workers by inducing capital deepening and innovation in developed countries. Data strongly support the presence of this channel. Offshoring is associated with large...

Wage inequality has risen in India over the past three decades. A similar phenomenon has been documented widely for other developing countries. However, unlike in other countries, which saw widening wage structures both between and within skill groups, I show that inequality in India increased...