Can Offshoring Reduce Unemployment?

摘要: In this paper, in order to study the impact offshoring on sectoral and economywide rates of unemployment, we construct a two-sector, general-equilibrium model which labor is mobile across two sectors, unemployment caused by search frictions. We find that, contrary general perception, wage increases decreases due offshoring. This result can be understood arise from productivity enhancing (cost reducing) effect If cost identical or higher sector experiences offshoring, rate decreases. When modify disallow intersectoral mobility, negative relative price may offset positive effect, rise that sector. other sector, has much stronger reducing case.