@TechReport{iza:izadps:dp9973,
            	author={Bandyopadhyay, Subhayu and Basu, Arnab K. and Chau, Nancy H. and Mitra, Devashish},
            	title={Disentangling the Wage Impacts of Offshoring on a Developing Country: Theory and Policy},
            	year={2016},
	month={May},
            	institution={Institute of Labor Economics (IZA)},
            	address={Bonn},
            	type={IZA Discussion Paper},
            	number={9973},
            	url={https://www.iza.org/index.php/publications/dp9973},
	abstract={The various channels through which a reduction in the cost of offshoring can improve wages in a developed country are by now well understood. But does a similar reduction in the offshoring cost also benefit workers in the world's factories in developing countries? Using a parsimonious two-country model of offshoring we find very nuanced results. These include cases where wages monotonically improve or worsen as well as those where wages exhibit an inverted U-shaped relationship in response to parametric reductions in the cost of offshoring. We identify qualitative conditions under which wages and welfare increase or decrease in the developing world as a result of a reduction in offshoring costs. Since global welfare always rises with an improvement in offshoring technology, we find that there is a role for a wage tax or a minimum wage in the developing country. We derive the optimal levels of such policies.},
	keywords={wages;international offshoring;wage tax;minimum wage},
            }