Abstract

In this article, I provide an overview of the growing literature on offshoring and wages. I begin by documenting the recent growth in goods and service offshoring. I then discuss the mechanisms through which offshoring is likely to affect wages and review the empirical literature on the impact of offshoring on both the relative and absolute wage of low-skilled workers in advanced economies. Lastly, I conclude by providing some thoughts on what governments can do to address the labour market consequences of offshoring.

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